YINLUN(002126) Minsheng Securities·2024-10-15 01:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on a closing price of 19.07 CNY per share on October 14, 2024, corresponding to a PE ratio of 19/15/13 for the years 2024-2026 [1][3]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 6.0-6.1 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 34.1% to 37.5% [1]. - The growth in Q3 2024 is attributed to cost reduction measures and improved operational efficiency, alongside significant contributions from overseas operations, particularly from the North American market [1]. - The company is experiencing rapid growth in its new energy thermal management business, expanding its customer base to include major players in the automotive industry [1]. - The third growth curve, focusing on digital and energy thermal management, is expected to contribute significantly to the company's performance starting in 2024 [1]. Financial Forecasts - Revenue projections for 2024-2026 are 136.1 billion CNY, 163.1 billion CNY, and 193.0 billion CNY respectively, with net profits of 8.52 billion CNY, 10.45 billion CNY, and 12.61 billion CNY [1][2]. - The report forecasts earnings per share (EPS) of 1.02 CNY, 1.26 CNY, and 1.52 CNY for the years 2024-2026 [2][4]. - The company’s financial metrics indicate a strong growth trajectory, with a net profit growth rate of 59.7% in 2023, expected to moderate to 20.7% by 2026 [4]. Business Performance - The company has successfully localized manufacturing and globalized operations, achieving breakeven in its Mexican plant and contributing to overall profitability in North America [1]. - The report highlights the company's strategic focus on enhancing profit margins through various operational improvements, including procurement cost reduction and quality enhancements [1]. - The company has secured multiple orders from new energy vehicle manufacturers, indicating a robust expansion in its product offerings and market share [1].