AFR(300620) Guolian Securities·2024-10-24 02:00Investment Rating - The investment rating for the company is "Buy (First Time)" [4] Core Views - The company reported a revenue of 739 million yuan for the first three quarters of 2024, representing a year-on-year growth of 41.00%. The net profit attributable to the parent company was 56 million yuan, up 19.53% year-on-year, while the net profit excluding non-recurring items was 45 million yuan, reflecting a growth of 39.61% [2][6] - The operating cash flow net amount reached 148 million yuan, showing a significant increase of 115.28% year-on-year. The revenue growth is attributed to the consolidation of Bai'an Industrial and increased sales from Huaw微捷 [6] - The company is expected to benefit from policy support as the Guangdong provincial government accelerates the development of the optical chip industry, with a focus on thin-film lithium niobate modulator chips [6] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 318 million yuan, marking a year-on-year increase of 71.33% and a quarter-on-quarter growth of 21.57%. The gross margin for Q3 was 36.83%, up by 1.28 percentage points from the previous quarter [6] - The projected revenues for 2024-2026 are 933 million yuan, 1.203 billion yuan, and 1.553 billion yuan, with year-on-year growth rates of 31.39%, 28.95%, and 29.10% respectively. The net profit attributable to the parent company is expected to be 109 million yuan, 145 million yuan, and 192 million yuan for the same period, with growth rates of 82.85%, 32.34%, and 33.18% respectively [6][7] Strategic Developments - The acquisition of Bai'an Industrial has enriched the company's product line and enhanced its competitive edge in the automotive laser radar light source module sector. The company is also making steady progress in establishing its production base in Thailand [6] - The Guangdong provincial government's recent action plan aims to foster innovation in the optical chip industry, which is expected to create a favorable environment for the company's growth in this sector [6] Valuation Metrics - The current price of the company's stock is 51.78 yuan, with a market capitalization of approximately 12.79 billion yuan. The price-to-earnings ratio (P/E) for 2024 is projected to be 118.3, while the price-to-book ratio (P/B) is expected to be 7.3 [4][7]