FYG,FUYAO GLASS(600660) Guoxin Securities·2024-10-19 13:03Investment Rating - The investment rating for Fuyao Glass is "Outperform the Market" [5][2]. Core Views - Fuyao Glass has demonstrated strong revenue growth, with a 13% year-on-year increase in Q3 2024 and a 54% increase in net profit attributable to shareholders. The company achieved a revenue of 28.314 billion yuan in the first three quarters of 2024, representing an 18.8% year-on-year growth [1][6]. - The company's competitive advantages stem from scale effects, high automation, a vertical supply chain, and cost efficiency. The outlook includes expansion into overseas markets and high-value-added products, which are expected to drive a new growth cycle [1][2]. Summary by Sections Financial Performance - In Q3 2024, Fuyao Glass reported a revenue of 9.974 billion yuan, a year-on-year increase of 13.41% and a quarter-on-quarter increase of 4.94%. The net profit attributable to shareholders was 1.98 billion yuan, reflecting a year-on-year increase of 53.54% [1][6]. - The gross margin for Q3 2024 was 38.78%, up 2.47 percentage points year-on-year and 1.05 percentage points quarter-on-quarter. The net profit margin was 19.86%, an increase of 5.18 percentage points year-on-year [1][12]. Market Position and Growth Potential - Fuyao Glass's automotive glass sales reached 140 million square meters in 2023, corresponding to the assembly of approximately 35.04 million vehicles. The company holds a global market share of over 36% in automotive glass [1][31]. - The company is actively expanding production capacity in locations such as Fuzhou, Anhui, and North America, which is expected to enhance its market share further [1][36]. Product Development and Innovation - Fuyao Glass is focusing on high-value-added products, with a significant increase in the proportion of such products in its sales. The average price per square meter of automotive glass has risen from 174 yuan in 2020 to 213 yuan in 2023, with a compound annual growth rate (CAGR) of 7% [1][2]. - The company is investing heavily in R&D, with over 4% of its revenue allocated to innovation, resulting in a steady increase in its patent portfolio and technological capabilities [1][42]. Future Outlook - The forecast for net profit attributable to shareholders is 7.623 billion yuan for 2024, with expected growth rates of 35.4% and 15.6% for the following years [3][2]. - The automotive glass market is projected to continue growing, with the average selling price expected to rise as the demand for smart and high-performance glass products increases [1][39].