BAMC(SH:601137) Minsheng Securities·2024-10-26 13:31Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company's performance exceeded expectations, primarily due to strong profitability in the photovoltaic business. For the first three quarters of 2024, the company achieved revenue of 14.59 billion yuan, a year-on-year increase of 16.5%, and a net profit attributable to shareholders of 1.1 billion yuan, up 38.8% year-on-year [3]. - The copper alloy segment showed significant growth, with sales volume in the first half of 2024 reaching 113,000 tons, a year-on-year increase of 33.1%. The company expects stable sales in the third quarter of 2024 [3][4]. - The photovoltaic segment's component sales in the first half of 2024 were 973 MW, a slight decline of 8.5% year-on-year, but a significant recovery is anticipated in the third quarter [3][4]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 5.72 billion yuan, a year-on-year increase of 19.6% and a quarter-on-quarter increase of 30.4%. The net profit attributable to shareholders was 460 million yuan, up 38.9% year-on-year and 22.7% quarter-on-quarter [3]. - The company expects net profits for 2024-2026 to be 1.55 billion, 2.1 billion, and 2.5 billion yuan, respectively, with corresponding PE ratios of 10, 7, and 6 times [4][5]. Business Segments - The copper alloy segment is benefiting from the release of capacity from a 50,000-ton strip project, with a focus on optimizing product structure. The company is also progressing on expansion projects for special alloy electronic materials [4]. - In the photovoltaic segment, the company is expanding production capacity with projects in Vietnam and the U.S., which are expected to maintain high profitability levels [4]. Market Outlook - The report highlights that the company’s photovoltaic business has a competitive advantage in the overseas supply chain, which is expected to support sustained high profitability [4].