KEBODA(603786) Minsheng Securities·2024-10-28 13:00Investment Rating - The report maintains a "Recommended" rating for the company with a current price of 59.14 CNY per share [1]. Core Insights - The company reported strong performance in Q3 2024, with revenue reaching 4.73 billion CNY, a year-on-year increase of 33.79%, and a net profit of 607 million CNY, also up 33.24% year-on-year [3][5]. - The growth in revenue and profit is attributed to partnerships with leading new energy vehicle manufacturers and the introduction of new products [3][5]. - The company has established itself as a key player in the automotive electronics sector, focusing on domain control technology and expanding its client base [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 4.273 billion CNY, a 33.79% increase year-on-year, and a net profit of 607 million CNY, up 33.24% year-on-year [3]. - In Q3 2024 alone, revenue was 1.530 billion CNY, reflecting a 24.11% year-on-year growth and a 15.48% quarter-on-quarter increase [3]. - The gross margin for Q3 2024 was 29.65%, showing a slight decrease of 0.92 percentage points year-on-year but an increase of 3.54 percentage points quarter-on-quarter [3]. Product and Client Development - The company has successfully partnered with major new energy vehicle manufacturers, with sales to Li Auto increasing by 157.5% year-on-year, making it the fourth-largest client [3][5]. - New product launches include body domain controllers, chassis domain controllers, and energy management systems, contributing to revenue growth [3][5]. - The company has secured 43 new projects with global clients such as Volkswagen, BMW, and Mercedes, indicating a strong pipeline for future growth [3][5]. Future Projections - The company is projected to achieve revenues of 6.431 billion CNY, 7.865 billion CNY, and 9.862 billion CNY for 2024, 2025, and 2026, respectively, with corresponding net profits of 898 million CNY, 1.153 billion CNY, and 1.457 billion CNY [6][7]. - The earnings per share (EPS) are expected to rise to 2.22 CNY, 2.85 CNY, and 3.61 CNY over the same period, with price-to-earnings (PE) ratios of 27, 21, and 16 [6][7].