Changhong Meiling (000521) Southwest Securities·2024-10-25 00:38Investment Rating - The report maintains a "Buy" rating for Changhong Meiling (000521) [1][2]. Core Views - The company achieved a revenue of 22.76 billion yuan in the first three quarters of 2024, representing an 18.7% year-on-year increase. The net profit attributable to shareholders was 530 million yuan, up 6.3% year-on-year, while the net profit after deducting non-recurring gains and losses was 510 million yuan, a slight increase of 0.2% year-on-year [1]. - In Q3 2024, the company reported a revenue of 7.81 billion yuan, a 23.2% year-on-year growth, but the net profit attributable to shareholders decreased by 18% to 120 million yuan, and the net profit after deducting non-recurring gains and losses fell by 37.7% to 80 million yuan [1]. - The company’s revenue growth is attributed to strong external sales, which outperformed domestic sales. The report suggests that the company is aligned with industry trends, where external sales are performing better than internal sales [1][2]. - The gross margin in Q3 2024 decreased by 4.7 percentage points to 10%, primarily due to fluctuations in raw material prices and a higher proportion of lower-margin overseas sales [1]. - The report highlights that the "old-for-new" policy is alleviating competitive pressure in the domestic market, leading to a recovery in industry demand and a shift from price competition to quality enhancement [2]. Financial Summary - For 2024-2026, the earnings per share (EPS) estimates are adjusted to 0.74 yuan, 0.86 yuan, and 1.00 yuan respectively. The report maintains the "Buy" rating based on these projections [2]. - The company’s revenue is projected to grow from 24.25 billion yuan in 2023 to 35.27 billion yuan in 2026, with corresponding growth rates of 19.95%, 16.13%, 13.14%, and 10.71% [3]. - The net profit attributable to shareholders is expected to increase from 741.04 million yuan in 2023 to 1.03 billion yuan in 2026, with growth rates of 203.04%, 3.33%, 15.24%, and 17.05% respectively [3]. - The report indicates a decrease in the net profit margin, with the net profit margin in Q3 2024 at 1.5%, down 0.8 percentage points year-on-year [1].