Beijing Relpow Technology (SZ:300593)2024-10-25 09:00Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company reported a revenue of 682 million yuan for the first three quarters of 2024, a year-on-year decline of 37.63%, and a net profit attributable to shareholders of -138 million yuan, indicating a shift from profit to loss [1] - The revenue decline in Q3 2024 was narrowed to 6.2% year-on-year, compared to a decline of 25.9% in Q2 and 59.8% in Q1, suggesting a potential turning point in Q4 as demand is expected to recover [1] - The company has increased its R&D expenses by 18.6% year-on-year to 102 million yuan in Q3 2024, with a R&D expense ratio of 52.5%, indicating a commitment to sustainable growth through innovation [1] - The company has seen a significant reduction in accounts receivable, with a decrease of 37 million yuan, and inventory levels reached a historical high of 1.083 billion yuan, suggesting improved cash flow and potential for rapid revenue recognition in Q4 [1] Financial Forecasts - The company is projected to have revenues of 981 million yuan in 2024, with a revenue growth rate of -33.12%, and a net profit of -75 million yuan [5] - For 2025 and 2026, revenues are expected to rebound to 1.424 billion yuan and 1.933 billion yuan, with net profits of 175 million yuan and 221 million yuan respectively, indicating a strong recovery trajectory [5] - The gross margin is forecasted to be 42.71% in 2024, slightly down from 45.46% in 2023, but expected to improve in subsequent years [5]