CSB(SZ:300718) GOLDEN SUN SECURITIES·2024-10-25 12:15Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [2][4]. Core Views - The company has shown overall revenue growth in the first three quarters of 2024, achieving an operating income of 835 million yuan, a year-on-year increase of 1.95%. However, the net profit attributable to shareholders decreased by 5.29% to 169 million yuan [1]. - The report highlights that while profits are under short-term pressure, downstream demand is in a recovery phase, which is expected to gradually improve profit growth [1]. - The gross margin remains high at 34.82%, slightly down by 1.00 percentage point compared to the previous year, reflecting ongoing business structure optimization [1]. - The company is positioned to benefit from trends in the wind power bearing market and the robotics industry, suggesting potential for profit and valuation upside [2]. Financial Performance Summary - For 2024, the company is projected to achieve operating revenues of 1.214 billion yuan, with a net profit of 251 million yuan, reflecting a growth rate of 3.7% year-on-year [3][12]. - The earnings per share (EPS) for 2024 is estimated at 0.84 yuan, with a price-to-earnings (P/E) ratio of 20.5 times [3][12]. - The company has demonstrated strong cost control, with a decreasing expense ratio, which is expected to support profitability moving forward [1]. Industry Insights - The automotive sector has shown a slight recovery, with production and sales of vehicles in China increasing by 1.9% and 2.4% respectively in the first nine months of 2024 [1]. - The engineering machinery sector also reported growth, with excavator sales increasing by 10.8% year-on-year in September 2024 [1]. - The company is collaborating with multiple robotics manufacturers to develop sliding bearings for robotic applications, indicating a strategic move towards new growth areas [1].