Beijing Relpow Technology (SZ:300593) Minsheng Securities·2024-10-26 15:00Investment Rating - The report maintains a "Recommended" rating for the company, considering its capabilities in various power electronic solutions and advantages in domestic substitution [1][3]. Core Views - The company reported a revenue of 682 million yuan for the first three quarters of 2024, a year-on-year decrease of 37.6%, and a net profit attributable to shareholders of -138 million yuan, compared to a profit of 158 million yuan in the same period last year [1]. - The decline in revenue is attributed to insufficient market demand and order fluctuations within the industry, leading to a continuous decrease in revenue for six consecutive quarters [1]. - The company has significantly increased its R&D investment, which rose by 24% year-on-year, maintaining a leading position in technology within the industry [1]. - The report anticipates that industry demand will gradually recover, allowing the company to regain profit growth [1]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 193 million yuan, down 6.2% year-on-year, with a net profit of -70 million yuan [1]. - The gross margin for the first three quarters of 2024 decreased by 6.3 percentage points to 42.1% [1]. - The company’s operating cash flow turned positive in the first three quarters of 2024, amounting to 7 million yuan, compared to -171 million yuan in the same period last year [1]. - The company’s total liabilities increased significantly, with contract liabilities rising by 492% compared to the previous quarter [1]. Financial Forecasts - The company’s projected net profits for 2024, 2025, and 2026 are -112 million yuan, 146 million yuan, and 293 million yuan, respectively [1][4]. - The current stock price corresponds to a PE ratio of 52x for 2025 and 26x for 2026 [1][4]. - The report highlights a compound annual growth rate (CAGR) of 39.31% in R&D expenses from 2020 to 2023, indicating a strong commitment to innovation [1].