GW COMPOS(300699) Soochow Securities·2024-10-28 15:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a significant recovery in performance due to the gradual production ramp-up of the Inner Mongolia project and a gradual recovery in market demand [1][2] - In the first three quarters of 2024, the company achieved total operating revenue of 1.902 billion yuan, an increase of 8.90% year-on-year, while the net profit attributable to shareholders was 615 million yuan, a decrease of 1.00% year-on-year [1] - The third quarter saw a notable performance improvement, with operating revenue reaching 746 million yuan, a year-on-year increase of 42.63%, and net profit attributable to shareholders of 247 million yuan, a year-on-year increase of 18.62% [1] Summary by Sections Revenue and Profit Forecast - Total operating revenue is projected to be 2.794 billion yuan in 2024, with a year-on-year growth of 10.96% [1] - The net profit attributable to shareholders is expected to be 892.31 million yuan in 2024, reflecting a year-on-year increase of 2.19% [1] - The earnings per share (EPS) is forecasted to be 1.07 yuan in 2024, with a price-to-earnings (P/E) ratio of 33.29 [1] Production Capacity and Market Position - The Inner Mongolia project has successfully commenced production with an annual capacity of 4,000 tons of carbon fiber, enhancing the company's production capacity and market competitiveness [2] - The project aims for a total investment of 2.1 billion yuan to achieve an annual production capacity of 10,000 tons of high-performance carbon fiber [2] Financial Metrics and Cost Management - As of the third quarter of 2024, fixed assets increased to 2.730 billion yuan, a year-on-year rise of 43.55%, primarily due to the completion of the Inner Mongolia project [3] - Inventory reached 716 million yuan, a year-on-year increase of 57.00%, driven by the need for raw materials for the Inner Mongolia project [3] - The company has effectively controlled expenses, with management expenses decreasing by 6.58% year-on-year [3] Profitability and Valuation - The company maintains a profit forecast of 892 million yuan for 2024, with corresponding P/E ratios of 33, 28, and 25 for the years 2024, 2025, and 2026 respectively [3]