Wuxi Best Precision Machinery (SZ:300580) Guohai Securities·2024-10-23 13:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company's performance in the first three quarters of 2024 shows a steady increase in revenue and profit, aligning with expectations. Revenue reached 1.04 billion yuan, a year-on-year increase of 3.5%, while net profit attributable to shareholders was 220 million yuan, up 7.1% year-on-year. The non-recurring net profit was 210 million yuan, reflecting a significant year-on-year growth of 22.4% [3] - The company is strengthening its traditional core business while solidifying its layout in the new energy vehicle (NEV) sector. The first-tier industries include turbocharger core components and precision parts, while the second-tier focuses on NEV components, with production capacity ramping up and new product development ongoing [3][4] - The company is expanding its third-tier industrial applications, successfully introducing screw products into various scenarios, including industrial mother machines and humanoid robots. The company has signed bulk delivery orders with well-known machine tool manufacturers [3][4] Financial Performance Summary - For Q3 2024, the company reported revenue of 340 million yuan, a quarter-on-quarter decrease of 2.6% and a year-on-year decrease of 7.6%. The net profit attributable to shareholders was 80 million yuan, with a quarter-on-quarter increase of 8.9% and a year-on-year increase of 1.0% [3] - The gross profit margin for Q3 was 35.1%, up 1.0 percentage points quarter-on-quarter but down 1.3 percentage points year-on-year. The net profit margin was 23.5%, reflecting a quarter-on-quarter increase of 2.5 percentage points and a year-on-year increase of 1.7 percentage points [3] - The company’s total market capitalization is approximately 8.81 billion yuan, with a circulating market capitalization of about 8.29 billion yuan [3] Earnings Forecast - The company is expected to achieve revenues of 1.44 billion yuan, 1.73 billion yuan, and 2.13 billion yuan for the years 2024, 2025, and 2026, respectively. The net profit attributable to shareholders is projected to be 320 million yuan, 370 million yuan, and 450 million yuan for the same years [6][8]