Impressive 3Q results; Maintain BUY

（以下内容从招银国际《Impressive 3Q results; Maintain BUY》研报附件原文摘录）
卓胜微(300782)
Maxscend announced its 3Q earnings. Revenue surged 80.2% YoY and 47.7%QoQ to RMB1.4bn, the highest quarterly revenue in the Company’s history. Netprofit was RMB452mn with 94.3% YoY and 80.9% QoQ growth. The Company’sGPM slid from 49.2% in 2Q23 to 46.6% in 3Q23, as new factory is ramping upcapacity. The Company’s NPM recovered from 26.2% in 2Q23 to 32.1% in 3Q23since the Company’s sales growth was back on track. Maintain BUY ratingwith TP adjusted to RMB174.
3Q revenue beat consensus estimates of RMB1.11bn. The Company’s3Q revenue grew on seasonal client restocking, new product share gain andfavourable product mix. We think seasonality may be a crucial factor for3Q’s strong beat, as the industry-wide de-stocking efforts may haveconcluded.
3Q results suggest the demand is recovering and inventory is at ahealthy level. The Company's inventory level has steadily decreased fromthe peak of RMB1.8bn in 3Q22 to RMB1.4bn in 3Q23, close to 3 months ofsales (based on 3Q23 results). The Company also recorded RMB18mnreverse in inventory reserve, indicating the demand is recovering and theCompany was very prudent during the downcycle.
Module segment to drive future growth. We remain optimistic on theCompany’s performance in 2024/25E, particularly with the anticipation of 1)high performance SAW filters that are now in mass production and theCompany is the first contender to do so in domestic market, 2) more than160mn units of the Company’s SAW filters have been integrated into itsDiFEM, L-DiFEM and GPS modules, 3) duplexers and multiplexers arecurrently in mass production among several customers, and 4) the rollout ofits new L-PAMiD products that may become a successful revenue driver inthe future. We expect the Company to deliver top-line growth of 31% and32% YoY in 2024/25E.
Maintain BUY with TP raised to RMB174, based on 42.0x 2025E P/E,~10% below its 1-year historical avg. of 46.6x, as the Company istransitioning into fab-lite model from fabless model and margin compressiondue to the ramp up of new fab. We believe the valuation is fair consideringthe NP CAGR of 46.7% over 2024-25E. The Company is trading at a 10%premium compared to its peers at 38.1x 2025E P/E, given its leadingposition in the RF market and as a key beneficiary of semi localization.