CAERI(601965) China Post Securities·2024-10-28 04:45Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Insights - The company reported a revenue of 3.047 billion yuan for the first three quarters of 2024, representing an 18.1% year-on-year increase, and a net profit attributable to shareholders of 670 million yuan, up 18.8% year-on-year [2][4] - The automotive technology service segment showed a revenue growth of 13.9% year-on-year in Q3 2024, with a net profit increase of 22.0% [3][4] - The company is well-positioned to benefit from the growing demand for intelligent connected vehicle testing services, especially with the implementation of mandatory standards for intelligent connected vehicles starting January 2026 [4] Financial Performance Summary - Q3 2024 gross margin was 45.3%, with a net profit margin of 27.2%, indicating strong profitability [3] - The company expects revenues of 4.436 billion yuan, 4.885 billion yuan, and 5.891 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 957 million yuan, 1.114 billion yuan, and 1.344 billion yuan [5][6] - The earnings per share (EPS) are forecasted to be 0.95 yuan, 1.11 yuan, and 1.34 yuan for the years 2024, 2025, and 2026 respectively [5][6]