FYG,FUYAO GLASS(600660) Guolian Securities·2024-10-19 13:03Investment Rating - The investment rating for Fuyao Glass (600660) is not explicitly stated in the provided content, but the report suggests to "continue to pay attention" to the company, indicating a positive outlook [10]. Core Views - Fuyao Glass reported a revenue of 28.314 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 18.84%. The net profit attributable to shareholders was 5.479 billion yuan, up 32.79% year-on-year. The gross margin for Q3 was 38.78%, an increase of 2.47 percentage points year-on-year and 1.05 percentage points quarter-on-quarter, showing a consistent improvement since Q1 2023 [4][10]. - The company is recognized as a global leader in automotive glass, continuously enhancing R&D efforts and product upgrades, with a growing proportion of high-value-added products. The expansion of domestic and international production capacity is expected to support stable future earnings growth [10]. Summary by Sections Financial Performance - For Q3 2024, Fuyao Glass achieved a revenue of 9.974 billion yuan, a year-on-year increase of 13.41% and a quarter-on-quarter growth of 4.94%. The net profit for Q3 was 1.980 billion yuan, reflecting a year-on-year growth of 53.54% but a quarter-on-quarter decrease of 6.19% [10]. - The company experienced a total exchange loss of 138 million yuan in the first three quarters, contrasting with an exchange gain of 335 million yuan in the same period last year, indicating strong resilience in profitability despite currency fluctuations [10]. Gross Margin and Cost Management - The gross margin for Q3 was 38.78%, with contributing factors including the expansion of market share, increased sales of high-value products like sunroof and HUD glass, a decline in raw material prices, and cost optimization efforts [10]. - The expense ratios for Q3 2024 were as follows: sales expenses at 4.32%, management expenses at 7.41%, R&D expenses at 4.32%, and financial expenses at -1.18%, showing a mixed year-on-year change [10]. Future Projections - Revenue projections for Fuyao Glass from 2024 to 2026 are as follows: 39.355 billion yuan in 2024, 46.669 billion yuan in 2025, and 54.753 billion yuan in 2026, with year-on-year growth rates of 18.68%, 18.58%, and 17.32% respectively. The net profit projections are 7.664 billion yuan for 2024, 8.851 billion yuan for 2025, and 10.612 billion yuan for 2026, with growth rates of 36.14%, 15.50%, and 19.90% respectively [10][11].