Rockchip(603893)2024-10-15 23:06Investment Rating - The report maintains a "Buy" rating for the company with a target price of 91.42 CNY, unchanged from the previous rating [4][11]. Core Insights - The company's Q3 performance exceeded expectations, benefiting from the strong sales of flagship chips and comprehensive growth across AIoT product lines, with Q4 expected to maintain this growth trajectory [5][11]. - In Q3 2024, the company achieved a revenue of 911 million CNY, representing a year-on-year increase of 51.42% and a quarter-on-quarter increase of 29.18%, marking a record high for a single quarter [11]. - The net profit attributable to shareholders is projected to be between 157 million CNY and 177 million CNY, reflecting a year-on-year increase of 199.39% to 237.47% and a quarter-on-quarter increase of 36.57% to 53.95% [11]. - The company is a leading supplier of AIoT chips and is one of the few domestic players advancing to 8nm technology, justifying a valuation premium [11]. Financial Summary - The company forecasts EPS for 2024, 2025, and 2026 to be 1.06 CNY, 1.62 CNY, and 2.16 CNY respectively, with a projected average PE of 86 times for 2024 [11]. - The total revenue for 2024 is estimated at 3.275 billion CNY, with a year-on-year growth of 53.4% [12]. - The net profit attributable to shareholders is expected to reach 444 million CNY in 2024, a significant increase of 228.8% compared to 2023 [12]. Market Position and Product Development - The company is actively expanding its AIoT chip platform, with new products like RK3576, RK2118, and RV1103B being rapidly introduced and expected to contribute to growth in H2 2024 [11]. - The flagship product RK3588 is seeing increased production, with expectations for significant growth throughout 2024 compared to 2023 [11]. - The company is experiencing growth across various sectors, including consumer electronics, automotive, security, telecommunications, and industrial applications [11].