DUN'AN ENVIRONMENTAL(002011) KAIYUAN SECURITIES·2024-10-28 15:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company experienced performance disturbances due to impairment losses in Q3 2024, but the automotive parts business remains strong. Revenue for Q1-Q3 2024 reached 9.336 billion yuan, a year-on-year increase of 10.54%. The net profit attributable to shareholders was 649 million yuan, up 20.1% year-on-year. However, Q3 2024 saw a revenue of 2.990 billion yuan, a 4.09% increase, but net profit decreased by 17.18% to 1.749 billion yuan due to short-term impairment losses. The profit forecasts for 2024-2026 have been adjusted downwards, with expected net profits of 885 million yuan, 1.086 billion yuan, and 1.258 billion yuan respectively [2][3][4]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 93.36 billion yuan, with a net profit of 6.49 billion yuan and a non-recurring net profit of 6.29 billion yuan. The Q3 2024 revenue was 29.90 billion yuan, with a net profit of 1.749 billion yuan and a non-recurring net profit of 1.632 billion yuan [2][4]. - The gross profit margins for Q1, Q2, and Q3 2024 were 17.53%, 18.34%, and 18.57% respectively, showing a decline due to rising raw material costs. The net profit margins were 7.94%, 7.14%, and 5.85% respectively [4]. Business Segments - The automotive parts business is expected to grow significantly, supported by a recovery in the new energy vehicle sector, which saw a 34% year-on-year increase in production in Q3 2024. The company has approximately 13 billion yuan in current orders [3]. - The cooling business showed steady growth, with air conditioning production increasing by 26% year-on-year in September 2024, driven by policies encouraging upgrades [3]. Future Outlook - The company anticipates continued growth in its core refrigeration business due to product structure optimization and cost reduction efforts. The automotive thermal management business is also expected to grow as the product matrix improves [2][3]. - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 0.83 yuan, 1.02 yuan, and 1.18 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 13.3, 10.9, and 9.4 [2][6].