China Leadshine Technology (002979) 海通证券·2024-10-29 00:44Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company achieved a revenue of 1.155 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 9.62%, while the net profit attributable to the parent company reached 144 million yuan, up 56.36% year-on-year [3][4] - The improvement in profitability is attributed to changes in revenue structure, cost reduction, and efficiency enhancement, with a gross margin increase of 1.33 percentage points year-on-year [3] - The marketing transformation has begun to show results, with a significant improvement in profitability in the third quarter, despite a decline in revenue due to the downturn in the lithium battery industry [4] Financial Performance Summary - For the first three quarters of 2024, the company reported a comprehensive gross margin of 38.64%, an increase of 1.33 percentage points year-on-year [3] - The third quarter of 2024 saw a revenue of 332 million yuan, a decrease of 2.59% year-on-year, but the net profit increased by 65.60% to 28 million yuan [3][7] - The company’s operating expenses ratio decreased by 5.37 percentage points year-on-year to 49.35% in the first three quarters of 2024, with reductions in financial, sales, management, and R&D expense ratios [3][6] Financial Forecasts - The company is expected to achieve net profits of 226 million yuan, 292 million yuan, and 373 million yuan for the years 2024, 2025, and 2026, respectively [6][10] - Corresponding earnings per share are projected to be 0.74 yuan, 0.95 yuan, and 1.22 yuan for the same years [6][10] - The estimated price-to-earnings ratio for 2024 is set between 37-42 times, leading to a reasonable price range of 27.38-31.08 yuan [6]