Changhong Meiling (SZ:000521) Huachuang Securities·2024-10-25 12:16Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 10.4 CNY [1]. Core Views - The company reported a revenue of 22.76 billion CNY for the first three quarters of 2024, representing a year-on-year growth of 18.7%. In Q3 alone, revenue reached 7.81 billion CNY, up 23.2% year-on-year. However, the net profit attributable to the parent company was 530 million CNY, a 6.4% increase year-on-year, but a decrease of 18.0% in Q3 [1]. - Despite strong revenue growth, profitability is under pressure due to rising raw material costs and increased competition leading to price declines. The gross margin in Q3 fell by 4.7 percentage points to 10.0% [1]. - The company is expected to benefit from ongoing internal reforms and external market dynamics, with a focus on improving operational efficiency and optimizing product and channel structures. This is anticipated to drive long-term growth [1]. Financial Summary - For 2024, the company is projected to achieve a revenue of 28.65 billion CNY, a growth rate of 18.2%. The net profit is expected to be 776 million CNY, reflecting a growth of 4.7% [2]. - The earnings per share (EPS) forecast for 2024 is 0.75 CNY, with a price-to-earnings (P/E) ratio of 12 [2]. - The company’s total assets are estimated to reach 21.54 billion CNY by 2024, with a debt-to-asset ratio of 68.9% [5].