SG Micro Corp(300661) 国元证券·2024-10-28 03:31Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 95.16 yuan over a 6-month period [3]. Core Insights - The company's Q3 revenue reached 868 million yuan, representing a year-over-year increase of 18.52% and a quarter-over-quarter increase of 2.48%. The net profit attributable to the parent company was 106 million yuan, with a year-over-year increase of 102.74% but a quarter-over-quarter decrease of 14.50% [3]. - The overall gross margin remained stable at 51.88%, showcasing the company's resilience amid intensified industry competition. The product structure optimization and continuous new product development contributed to this stability [3][4]. - The company is expected to benefit significantly from the recovery in the consumer electronics sector and the anticipated recovery phase in the industrial sector, as well as the growing demand in the Chinese automotive market [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.445 billion yuan, a year-over-year increase of 29.96%, and a net profit of 285 million yuan, a year-over-year increase of 100.57%. The gross margin and net margin were 52.17% and 11.34%, respectively [3]. - The forecast for 2024 and 2025 indicates revenues of 3.258 billion yuan and 3.993 billion yuan, with net profits of 440 million yuan and 604 million yuan, respectively. The corresponding EPS is projected to be 0.94 yuan and 1.29 yuan per share, with P/E ratios of 102 and 74 times [4][3]. Market Position and Industry Trends - The company holds a product structure distribution of 53% in consumer electronics, 32% in industrial applications, 10% in communication, and 5% in automotive sectors. This diversified structure positions the company well to capitalize on the recovery trends in these markets [3]. - The report highlights that the industrial sector is showing positive bottom signals, with inventory destocking nearing completion, suggesting a potential recovery phase in the second half of 2024 [3].