Fortior Technology(Shenzhen) (SH:688279) EBSCN·2024-06-14 00:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [6]. Core Insights - The company, Fengcai Technology, specializes in motor drive control chips and has evolved into a system-level service provider, integrating chip design, motor drive architecture, and motor technology to meet diverse control needs [1]. - The company has achieved ISO 26262 certification for functional safety management, marking a significant step in expanding its automotive electronics business, which now accounts for 5% of sales [9]. - The report forecasts the company's net profit for 2024 and 2025 at 205 million and 255 million yuan respectively, with a new forecast for 2026 at 324 million yuan, corresponding to P/E ratios of 55, 44, and 35 [21]. Financial Summary - Revenue is projected to grow from 323 million yuan in 2022 to 843 million yuan by 2026, with a compound annual growth rate (CAGR) of approximately 25% [22]. - The net profit is expected to increase from 142 million yuan in 2022 to 324 million yuan in 2026, reflecting a growth rate of 27.16% in 2026 [22]. - The company's gross margin is projected to stabilize around 54.6% by 2026, while the EBITDA margin is expected to reach 37% [15][22]. Market Position and Growth Potential - The company is well-positioned to capitalize on the growing demand for high-performance motor drive control chips, driven by trends in industrial automation and smart technology [19]. - The report highlights the company's focus on expanding its presence in emerging industries, particularly in automotive applications, which are expected to drive future growth [9][19].