Willfar(688100) 海通证券·2024-10-23 04:07Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company achieved a 16.79% YoY increase in revenue and a 21.95% YoY increase in net profit attributable to the parent company in the first three quarters of 2024 [5] - The company's net profit growth outpaced revenue growth due to factors such as a RMB 26 million gain from changes in fair value and a 0.32 percentage point decrease in the period expense ratio [5] - The company's overseas revenue in the first three quarters of 2024 reached RMB 329 million, a 105.85% YoY increase [6] - The company has a strong order backlog, with new contracts signed in the first three quarters of 2024 totaling RMB 2.559 billion, a 13.61% YoY increase [6] - The company is expected to achieve net profits attributable to the parent company of RMB 634 million, RMB 786 million, and RMB 983 million in 2024, 2025, and 2026, respectively [8] Financial Performance - In the first three quarters of 2024, the company's revenue was RMB 1.941 billion, with a gross margin of 39.13% [5] - The company's period expense ratio in the first three quarters of 2024 was 14.34%, a 0.32 percentage point decrease YoY [5] - In Q3 2024, the company's revenue was RMB 719 million, a 10.60% YoY increase, with a net profit attributable to the parent company of RMB 151 million, a 14.48% YoY increase [5] - The company's period expense ratio in Q3 2024 was 16.47%, a 0.29 percentage point decrease YoY [5] Business Development - The company is deeply engaged in three major markets: digital power grids, smart cities, and international business [5] - The company has launched over 30 new products and solutions in 2024, including distributed photovoltaic solutions and new-generation dual-mode communication chips [8] - The company's new product revenue in the first three quarters of 2024 was RMB 900 million, accounting for 47% of its main business revenue [8] Valuation and Forecast - The report forecasts the company's EPS for 2024-2026 to be RMB 1.29, RMB 1.60, and RMB 2.00, respectively [8] - The report suggests a reasonable valuation range of RMB 42.57-50.31 for the company in 2024, based on a PE ratio of 33-39x [8]