Hangcha (603298)2024-10-24 09:39Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 17.57 CNY [7]. Core Views - The company has demonstrated stable performance despite pressure on domestic sales, with a continuous improvement in profitability [1]. - The projected net profits for the company from 2024 to 2026 are estimated at 2.02 billion, 2.26 billion, and 2.67 billion CNY, respectively, corresponding to valuation multiples of 11.4, 10.2, and 8.6 times [1][6]. - The company achieved a revenue of 12.73 billion CNY in the first three quarters of 2024, reflecting a year-on-year growth of 1.55%, while the net profit attributable to the parent company reached 1.57 billion CNY, up 21.2% year-on-year [2]. Financial Performance - For Q3 2024, the company reported a revenue of 4.18 billion CNY, with a year-on-year decrease of 2.65% and a quarter-on-quarter decrease of 4.64%. The net profit attributable to the parent company was 566 million CNY, showing a year-on-year increase of 9.07% but a quarter-on-quarter decrease of 9.82% [2]. - The gross margin and net margin for Q3 2024 were 25.24% and 13.7%, respectively, with year-on-year increases of 2.87 percentage points and 0.89 percentage points [2]. - The company has a total revenue forecast of 16.71 billion CNY for 2024, with a growth rate of 2.72% [6]. Operational Strategy - The company is optimizing its global operational system and expanding into new overseas markets, achieving breakthroughs in Southeast Asia, the Middle East, Central Asia, Turkey, and Spain [3]. - Significant investments have been made in the construction of a new production base for automated equipment, with a total investment of over 200 million CNY [4]. - The company has completed the industrial layout for core components of new energy products, establishing a fully controllable supply chain in the high-end component sector [4]. Financial Projections - The company is expected to see a steady increase in net profit, with projections of 2.02 billion CNY in 2024, 2.26 billion CNY in 2025, and 2.67 billion CNY in 2026, reflecting growth rates of 17.44%, 11.95%, and 18.21%, respectively [6][9]. - The earnings per share (EPS) are projected to rise from 1.31 CNY in 2023 to 2.04 CNY in 2026 [6][9].