EMT(SH:601208) Changjiang Securities·2024-10-28 10:14Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company achieved a revenue of 3.25 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 14.8%. However, the net profit attributable to shareholders decreased by 22.8% to 240 million yuan, and the net profit after deducting non-recurring gains and losses fell by 14.0% to 160 million yuan [4][5]. - In Q3 2024, the company reported a revenue of 1.12 billion yuan, a year-on-year increase of 12.7% but a quarter-on-quarter decrease of 6.5%. The net profit attributable to shareholders was 80 million yuan, down 10.7% year-on-year and down 30.0% quarter-on-quarter [4][5]. - The company is focusing on high-end resin products, which are experiencing rapid growth, while traditional sectors are under pressure. The sales volume of key segments such as electrical insulation materials, new energy materials, optical film materials, electronic materials, and environmentally friendly flame retardant materials saw significant year-on-year growth [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 3.25 billion yuan, with a year-on-year growth of 14.8%. The net profit attributable to shareholders was 240 million yuan, down 22.8%, and the net profit after deducting non-recurring gains and losses was 160 million yuan, down 14.0% [4][5]. - In Q3 2024, the company achieved a revenue of 1.12 billion yuan, reflecting a year-on-year increase of 12.7% but a quarter-on-quarter decrease of 6.5%. The net profit attributable to shareholders was 80 million yuan, down 10.7% year-on-year and down 30.0% quarter-on-quarter [4][5]. Product Development and Market Position - The company has a wide range of product applications, focusing on new insulation materials, optical film materials, electronic materials, and environmentally friendly flame retardant materials. These products are used in various sectors including power generation equipment, ultra-high voltage transmission, smart grids, new energy vehicles, rail transportation, consumer electronics, flat displays, electrical appliances, and 5G communications [4]. - The company is experiencing growth in high-end optical films and high-frequency, high-speed resins, while facing challenges in the photovoltaic PET and ordinary resin film businesses. The growth in revenue is attributed to the gradual release of production capacity from newly established industrial projects [4][5]. Strategic Initiatives - The company is collaborating with Chemax and Zhongyi Chemical to develop high-end photoresist materials, leveraging Chemax's established technology and sales network. The related equipment has been installed and is in trial production [4]. - The company is also expanding its electronic materials business in artificial intelligence and low-orbit satellite communication sectors, with plans to invest in a project for producing 20,000 tons of electronic materials for high-speed communication substrates [4]. Shareholder Confidence - The actual controller and associated parties have increased their shareholding, indicating confidence in the company's future development. The actual controller's associate has cumulatively increased their shareholding by 5.659 million shares, accounting for 0.63% of the total share capital [4].