UNI-T(688628) Southwest Securities·2024-10-25 10:01Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company's performance in Q1-Q3 2024 met expectations, with revenue reaching 850 million yuan, a year-on-year increase of 8.9%, and a net profit attributable to shareholders of 150 million yuan, up 15.0% year-on-year. In Q3 alone, revenue was 290 million yuan, reflecting a 21.2% year-on-year growth, and net profit was 50 million yuan, a significant increase of 37.4% year-on-year [1]. - The company's gross margin improved to 44.8% for Q1-Q3 2024, up 2.4 percentage points year-on-year, driven by enhanced market development and product line optimization. The net profit margin also increased to 17.4%, up 0.9 percentage points year-on-year [1]. - The company is expanding its product matrix and market reach, with a focus on high-end products. The establishment of an overseas production base in Vietnam is expected to contribute to growth starting in Q4 2024 [1]. Financial Summary - For 2024-2026, the company is projected to achieve net profits of 210 million, 260 million, and 310 million yuan, respectively, with a compound annual growth rate (CAGR) of 24% in net profit over the next three years. The current stock price corresponds to price-to-earnings (PE) ratios of 20, 17, and 14 for the respective years [2][6]. - The company's revenue is expected to grow from 1.02 billion yuan in 2023 to 1.60 billion yuan in 2026, with growth rates of 14.44%, 14.14%, 17.26%, and 17.10% for the respective years [3][6]. - The return on equity (ROE) is projected to increase from 13.31% in 2023 to 16.75% in 2026, indicating improved profitability and efficiency [3][6].