Willfar(688100) 华西证券·2024-10-23 08:03Investment Rating - The report maintains an "Overweight" rating for the company [1] Core Views - The company achieved robust growth in both domestic and international markets, with overseas business revenue doubling year-over-year [1] - The company's product structure optimization has driven an increase in gross margin, with both revenue and net profit showing double-digit growth [1] - The company's international business revenue grew by 105.9% YoY, accounting for 17% of total revenue, up from 10% in 2023 [1] - The company has a strong order backlog, with new contracts signed in the reporting period amounting to 2.56 billion yuan, a 13.6% YoY increase, and total contracts on hand reaching 3.77 billion yuan, a 28.7% YoY increase [1] Business Performance - In Q1-Q3 2024, the company achieved revenue of 1.94 billion yuan, a 16.8% YoY increase, and net profit attributable to shareholders of 420 million yuan, a 22.0% YoY increase [1] - In Q3 2024, the company achieved revenue of 720 million yuan, a 10.6% YoY increase, and net profit attributable to shareholders of 150 million yuan, a 14.5% YoY increase [1] - The company's network layer business revenue reached 700 million yuan, an 11.3% YoY increase, driven by growth in communication module business [1] - The perception layer business revenue reached 420 million yuan, a 31.2% YoY increase, driven by the digital grid's electric monitoring terminal business [1] - The application layer business revenue reached 100 million yuan, a 69.9% YoY increase [1] Product and Market Development - The company launched over 30 new products and solutions, including distributed photovoltaic solutions, electric Hongmeng terminals, and new-generation dual-mode communication chips [1] - New products accounted for approximately 50% of the company's main business revenue, with new product revenue reaching 900 million yuan in the first three quarters, a 32.4% YoY increase [1] - The company secured significant contracts in the State Grid and Southern Grid, further solidifying its position as a leading supplier in the market [1] - The company expanded its overseas presence by establishing subsidiaries in Mexico and Indonesia, and planning factories in Saudi Arabia, Indonesia, and Mexico [1] Financial Performance and Projections - The company's revenue for 2024-2026 is projected to be 2.68 billion yuan, 3.25 billion yuan, and 3.98 billion yuan, respectively, with YoY growth rates of 20.5%, 21.3%, and 22.4% [2] - Net profit attributable to shareholders is projected to be 637 million yuan, 778 million yuan, and 949 million yuan for 2024-2026, with YoY growth rates of 21.3%, 22.0%, and 22.0% [2] - The company's gross margin is expected to remain stable at around 41.4%-41.6% over the next three years [2] - The company's ROE is projected to be around 17.8%-17.9% from 2024 to 2026 [2] Shareholder Returns - The company completed the cancellation of 8.3148 million repurchased shares, amounting to approximately 200 million yuan, which is expected to increase earnings per share [2] - The company plans to maintain a cash dividend payout ratio of 40% for 2024, continuing to enhance shareholder returns [2] Valuation - The company's PE ratio for 2024-2026 is projected to be 32.55x, 26.67x, and 21.87x, respectively, based on the closing price of 42.19 yuan per share on October 22, 2024 [2]