KSHG(SH:605333) Minsheng Securities·2024-10-28 23:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 30.40 CNY, corresponding to PE ratios of 20, 15, and 12 for the years 2024, 2025, and 2026 respectively [5][3]. Core Insights - The company reported a revenue of 5.532 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 133.71%. The net profit attributable to shareholders reached 438 million CNY, up 2,030.18% year-on-year, indicating significant growth in profitability [2]. - The company has a robust order backlog, which supports its performance. It has secured new projects, including low and high-voltage wiring harnesses for various automotive clients, with production capacity utilization reaching 92.65% [3]. - The report highlights the potential of the domestic market for wiring harnesses, projecting a market size of 130.7 billion CNY by 2025, driven by the increasing demand for high-voltage and specialized wiring in electric vehicles [3]. Financial Forecasts - Revenue projections for the company are 7.748 billion CNY in 2024, 10.006 billion CNY in 2025, and 12.508 billion CNY in 2026, with growth rates of 93.6%, 29.2%, and 25.0% respectively [4][7]. - The net profit attributable to shareholders is expected to be 648 million CNY in 2024, 861 million CNY in 2025, and 1.093 billion CNY in 2026, with growth rates of 1,097.9%, 32.9%, and 27.0% respectively [4][7]. - The report anticipates earnings per share (EPS) of 1.48 CNY in 2024, 1.97 CNY in 2025, and 2.50 CNY in 2026 [4][7].