20231027-招银国际-闻泰科技-600745.SH-3Q_results_confirmed_ODM_back_on_track__poised_for_further_growth_4页_943kb

Wingtech (600745 CH) reported strong 3Q23 results with revenue and net profit growing 11.9% and 11.4% YoY, respectively, and improving slightly on a quarter-on-quarter basis. The ODM segment showed significant recovery with revenue growth of 24.3% YoY, achieving profitability for two consecutive quarters despite macro challenges, and margins improved from 8.8% to 10.0% gross and net profit margin. The semi segment faced pressure due to the industry downturn, with revenue declining 6.8% YoY but showing slight improvement QoQ, and management expects sustained demand for auto products through strategic positioning.

Analysts maintain a BUY recommendation with an unchanged target price of RMB68, supported by expected 12.2% YoY revenue growth for FY24E and upside from new projects. Catalysts include the progress of the new 12-inch factory and mass production of new ODM and optical modules. Downside risks include overseas inflation, economic slowdown, operational disruptions, and potential share selling from major shareholders.

Key financial highlights include projected revenue growth from 3.9% for FY23E to 13.6% for FY25E, along with margin improvements in key segments. Long-term valuation based on a 25x FY24E P/E suggests a 41.5% upside from the current price.

Disclosures emphasize standard analyst certification, noting that recommendations are based solely on independent views and carry inherent risks, with past performance not indicative of future results.