Rockchip(603893)2024-10-22 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has exceeded expectations in its performance for Q1-Q3 2024, driven by the continuous penetration of edge AI and the ramp-up of new products, indicating strong growth potential [2][3] - The revenue for Q1-Q3 2024 reached 2.16 billion yuan, representing a year-on-year increase of 48.47%, while the net profit attributable to shareholders was 352 million yuan, up 354.90% year-on-year [2] - The company is expected to maintain robust growth with new products contributing significantly to revenue, with forecasts for net profit attributable to shareholders for 2024-2026 at 548 million, 855 million, and 1.25 billion yuan respectively [2][3] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 911 million yuan, a year-on-year increase of 51.36% and a quarter-on-quarter increase of 29.12% [2] - The gross margin for Q1-Q3 2024 was 36.52%, an increase of 1.70 percentage points year-on-year, while Q3 2024 gross margin was 37.34%, up 1.26 percentage points year-on-year [2] - The company’s new products, including RK3576, RK2118, and RV1103B, have shown promising adoption among leading clients, contributing to revenue growth [3] Market Demand and Product Development - The demand for AIoT products has been growing across various product lines, benefiting from the overall increase in the AIoT market and the company's strategic product matrix [3] - The company is positioned as a leader in AIoT SoC, with a diverse range of self-developed NPU capabilities, which is expected to enhance its competitive edge in the market [4] Future Outlook - Short-term outlook remains positive with new products expected to contribute to revenue in 2025, while long-term growth is anticipated as the company expands its AIoT chip product matrix [4] - The company’s financial forecasts indicate a significant recovery and growth trajectory, with expected revenue growth rates of 53.3%, 27.8%, and 28.7% for 2024, 2025, and 2026 respectively [5][6]