RAYHOO MOTOR DIES(002997) 民生证券·2024-10-18 07:30Investment Rating - The report maintains a "Recommend" rating for Ruihu Mould (002997 SZ) [4] Core Views - Ruihu Mould's Q3 2024 performance showed steady growth with revenue of 605 million yuan, up 37 97% YoY but down 1 68% QoQ Net profit attributable to the parent company was 91 million yuan, up 41 61% YoY and 5 74% QoQ [2] - The company's revenue growth was driven by increased sales from its core customer, Chery Automobile, which saw a 27 43% YoY increase in Q3 2024 sales [2] - The net profit margin reached 17 21%, up 1 61 percentage points YoY, while the gross margin was 24 54%, down 4 61 percentage points YoY [2] - The company's automotive parts business is gaining momentum, with revenue from this segment reaching 257 million yuan in H1 2024, up 244 75% YoY, accounting for 22 97% of total revenue [2] - The company is a supplier of integrated die-casting structural parts and stamping parts for the Zhijie R7 model, which has seen strong demand with over 20,000 pre-orders within 14 days of its launch [2] - The equipment business has a robust order book, with 3 93 billion yuan in orders as of H1 2024, up 14 95% from the end of the previous year [2] Financial Forecasts - Revenue is expected to grow from 2 57 billion yuan in 2024 to 4 46 billion yuan in 2026, with a CAGR of 30 32% [3][5] - Net profit attributable to the parent company is forecasted to increase from 361 million yuan in 2024 to 577 million yuan in 2026, with a CAGR of 24 79% [3][5] - EPS is projected to rise from 1 73 yuan in 2024 to 2 76 yuan in 2026 [3][5] - The PE ratio is expected to decline from 18x in 2024 to 11x in 2026, indicating potential undervaluation [3][5] Business Segments - The automotive parts business is expected to benefit from capacity expansion, with a new production facility for lightweight body and key components expected to be operational by June 2025 [2] - The equipment business is seeing strong demand, with new clients including Toyota and Dacia, as well as brands from countries along the Belt and Road initiative [2] Valuation - Based on the closing price of 31 41 yuan on October 17, 2024, the company's PE ratios for 2024-2026 are 18x, 14x, and 11x, respectively [3][5] - The PB ratios for the same period are 3 3x, 2 7x, and 2 3x, respectively [3][5]