DUN'AN ENVIRONMENTAL(SZ:002011) Guotou Securities·2024-10-27 00:23Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 14.88 CNY for the next six months [3][7]. Core Views - The company reported a revenue of 9.34 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 10.5%, and a net profit attributable to shareholders of 650 million CNY, up 20.1% year-on-year [1][2]. - The growth in the automotive thermal management segment is expected to continue, driven by the increasing production and sales of new energy vehicles, which rose by 33.9% and 33.5% year-on-year respectively in Q3 [1][2]. - The cooling equipment and components revenue growth has slowed down due to a downturn in the air conditioning industry, but future policies promoting appliance upgrades may boost demand [1][2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 2.99 billion CNY, a year-on-year increase of 4.1%, but the net profit attributable to shareholders decreased by 17.2% to 170 million CNY [1][2]. - The gross margin for Q3 was 18.6%, a slight decrease of 0.8 percentage points year-on-year, primarily due to price competition and rising raw material costs [1][2]. - The operating cash flow significantly improved, with a net cash flow of 280 million CNY in Q3, compared to a negative cash flow of 130 million CNY in the same period last year [2][7]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.83 CNY, 0.96 CNY, and 1.16 CNY respectively, indicating a positive growth trajectory [7][8]. - The company is expected to maintain a dynamic price-to-earnings ratio of 18 times for 2024, reflecting its growth potential [7][8]. Market Position - The company is recognized as a leading player in the refrigeration components industry, actively expanding its business in refrigeration equipment and new energy vehicle thermal management [7][8].