DMEGC(002056) Tai Ping Yang·2024-10-29 02:17Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative increase of over 15% compared to the CSI 300 index in the next six months [8][9]. Core Views - The company's Q3 2024 report shows a revenue of 13.581 billion yuan, a decrease of 13.85% year-on-year, and a net profit attributable to shareholders of 926 million yuan, down 43.89% year-on-year [2]. - The company's diverse business operations demonstrate resilience, with the photovoltaic business showing strong profitability [2]. - The ramp-up of production capacity in Indonesia is expected to stabilize and boost the photovoltaic business, with the company benefiting from improved pricing and profitability in the industry [2][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the photovoltaic business generated approximately 8 billion yuan in revenue, with a shipment volume of about 11.5 GW, representing a year-on-year growth of approximately 67% [2]. - The magnetic materials business reported revenue of about 3.33 billion yuan, with a shipment of 174,000 tons, a year-on-year increase of about 20% and a gross margin of 25% [2]. - The lithium battery business achieved revenue of 1.819 billion yuan, with a shipment volume of 4.1 million units, reflecting a year-on-year growth of about 70% [2]. Future Projections - The company is projected to achieve revenues of 20.985 billion yuan, 25.116 billion yuan, and 30.352 billion yuan for the years 2024, 2025, and 2026, respectively [4]. - Net profits attributable to shareholders are expected to be 1.451 billion yuan, 1.899 billion yuan, and 2.401 billion yuan for the same years [4]. - The report anticipates an EPS of 0.89 yuan, 1.17 yuan, and 1.48 yuan for 2024, 2025, and 2026, respectively [4]. Business Strategy - The company is focusing on expanding its market share in small power lithium batteries while also developing energy storage solutions [2]. - The magnetic materials segment is actively pursuing horizontal and vertical integration, enhancing its product offerings and market presence [2].