Wuxi Best Precision Machinery (300580) Tianfeng Securities·2024-10-23 08:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [4][12]. Core Insights - The company achieved a robust growth in net profit for Q3 2024, marking its best quarterly performance in history, with a net profit of 0.81 billion yuan, up 0.97% year-on-year [1]. - For the first three quarters of 2024, the company reported a revenue of 1.042 billion yuan, a year-on-year increase of 3.52%, and a net profit of 2.25 billion yuan, up 7.08% year-on-year [1]. - The company is expanding its production capacity in the electric vehicle parts sector, with its subsidiary in Anhui ramping up production and establishing a new facility in Thailand to enhance international market presence [1][2]. Financial Performance Summary - In Q3 2024, the company's revenue was 3.45 billion yuan, a decrease of 7.58% year-on-year, while the net profit was 0.81 billion yuan, reflecting a year-on-year increase of 0.97% [1]. - The gross margin for Q3 2024 was 35.15%, down 1.34 percentage points year-on-year, while the net margin improved to 23.51%, up 1.68 percentage points year-on-year [1]. - The company forecasts net profits of 3.38 billion yuan, 4.51 billion yuan, and 5.54 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 26, 20, and 16 [2][3]. Industry Position and Developments - The company is focusing on precision components for turbochargers and electric vehicle parts, with significant advancements in its C0-level ball screw assembly technology, securing initial orders from clients [2]. - The company is also enhancing its capabilities in linear motion components for industrial machinery and humanoid robots, indicating a strategic shift towards high-tech applications [2]. - The establishment of the Thailand facility is expected to provide a strong impetus for the company's international growth strategy [1][2].