DUN'AN ENVIRONMENTAL(SZ:002011)2024-10-28 09:12Investment Rating - The report maintains a "Buy" investment rating for the company [6] Core Views - The company's Q3 performance was impacted by asset impairment losses, with a total revenue of 9.336 billion yuan for the first three quarters of 2024, representing an 11% year-on-year increase. The net profit attributable to shareholders was 649 million yuan, up 20% year-on-year, while the net profit after deducting non-recurring gains and losses was 629 million yuan, a 1% increase year-on-year. In Q3 alone, the company achieved a revenue of 2.990 billion yuan, a 4% year-on-year increase, but the net profit decreased by 17% year-on-year to 175 million yuan due to impairment provisions totaling 114 million yuan [4][5][6] - The home appliance industry showed strong sales growth, with refrigerator sales reaching 62.88 million units from January to August 2024, a 11.6% increase year-on-year. Air conditioner sales for the same period totaled 154.84 million units, up 13.0% year-on-year. However, Q3 saw a decline in domestic air conditioner sales due to weak consumer demand, with a 10% year-on-year drop [5][6] - The automotive sector also experienced growth, with China's new energy vehicle production and sales reaching 8.316 million and 8.32 million units respectively from January to September 2024, marking a year-on-year increase of 31.7% and 32.5%. The company's automotive parts business is expected to outperform the industry due to increased market share with key clients [6] Financial Summary - For 2024, the company is projected to achieve total revenue of 12.587 billion yuan, with a year-on-year growth rate of 10.6%. The net profit attributable to shareholders is expected to be 922 million yuan, reflecting a 24.9% increase year-on-year. The earnings per share are forecasted to be 0.87 yuan [7][9] - The gross profit margin is anticipated to be 18.0% in 2024, with a return on equity (ROE) of 17.3% [7][9]