KFMI(300666) 中银证券·2024-11-20 13:25Investment Rating - The report maintains a "Buy" rating for Jiangfeng Electronics, indicating a positive outlook for the company's stock performance in the near future [3]. Core Insights - Jiangfeng Electronics reported a significant revenue growth of 41.77% year-on-year for the first three quarters of 2024, reaching RMB 2.625 billion, with a net profit increase of 48.51% to RMB 287 million [1][2]. - The third quarter alone saw a revenue increase of 52.48% year-on-year, amounting to RMB 998 million, and a remarkable net profit growth of 213.13% to RMB 126 million [1][2]. - The company is actively expanding its high-purity target materials and precision components, positioning itself as a key supplier for major semiconductor manufacturers [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, Jiangfeng Electronics achieved a gross margin of 29.96%, a slight increase of 0.76 percentage points year-on-year [2]. - The third quarter's gross margin was 28.26%, reflecting a decrease of 2.18 percentage points year-on-year [2]. - The company’s operating expenses have improved efficiency, with sales, management, R&D, and financial expense ratios showing varied changes [2]. Business Development - Jiangfeng Electronics has established itself as a supplier of high-purity sputtering targets for renowned manufacturers such as SMIC, TSMC, and BOE [2]. - The company is constructing projects to produce ultra-high purity metal sputtering targets, with a planned annual output of 52,000 units for integrated circuits [2]. - The establishment of a subsidiary in South Korea aims to enhance international competitiveness and supply chain stability [2]. Earnings Forecast - The earnings per share (EPS) estimates for 2024-2026 are projected at RMB 1.39, RMB 1.78, and RMB 2.43, respectively, with corresponding price-to-earnings (PE) ratios of 53.6, 41.9, and 30.6 [2].