KINGLAI MATERIALS(300260) SINOLINK SECURITIES·2024-10-25 07:09Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 2.161 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 9.35%. The net profit attributable to shareholders was 198 million RMB, up 17.63% year-on-year [1] - In Q3 2024, the company achieved a revenue of 743 million RMB, a year-on-year increase of 4.92%, but the net profit attributable to shareholders decreased by 0.18% year-on-year and 20.05% quarter-on-quarter [1] - The semiconductor components contributed to growth, while the food and pharmaceutical sectors remained stable [1] - The company has been actively repurchasing shares, indicating management's confidence in the business and long-term development [1] - The report highlights the strengthening logic of domestic semiconductor equipment independence due to export control measures from the US, Japan, and the Netherlands [1] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 25.00%, with a slight decline in Q3 2024 to 23.92%, down 1.88 percentage points quarter-on-quarter [1] - The company’s operating expenses ratio decreased slightly to 14.89% compared to 2023, with R&D expenses at 3.61%, down 0.46 percentage points from the end of 2023 [1] Future Projections - The company is expected to achieve net profits of 284 million RMB, 465 million RMB, and 654 million RMB for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 20.50%, 63.48%, and 40.75% [2] - The estimated EPS for the same years is projected to be 0.70 RMB, 1.14 RMB, and 1.60 RMB [2] Valuation - The current stock price corresponds to a PE ratio of 36, 22, and 16 for the years 2024, 2025, and 2026 respectively [2]