HQTI(688281) Changjiang Securities·2024-10-29 03:48Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. Core Views - The company's revenue for the first three quarters of 2024 reached 738 million, representing a year-on-year growth of 22.55%, while the net profit attributable to the parent company was 309 million, up 14.41% year-on-year [3]. - The revenue for Q3 alone was 253 million, showing a year-on-year increase of 14.77% but a quarter-on-quarter decrease of 7.26% in net profit, attributed to the impact of product delivery and revenue recognition timing [3][4]. - The company's gross profit margin for Q3 was 51.42%, down 8.77 percentage points year-on-year, indicating short-term pressure on profitability due to changes in product structure and ongoing investments in subsidiaries [4]. - The company has significantly increased its construction in progress and fixed assets, reflecting ongoing efforts to establish new business lines and support long-term growth [4]. - Profit forecasts for 2024-2026 predict net profits of 498 million, 646 million, and 848 million respectively, with corresponding PE ratios of 40, 31, and 23 times based on the current market capitalization of 19.9 billion [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 738 million, a 22.55% increase year-on-year, and a net profit of 309 million, up 14.41% year-on-year [3]. - Q3 revenue was 253 million, with a year-on-year growth of 14.77% but a quarter-on-quarter decline in net profit by 7.26% [3][4]. Profitability Analysis - The net profit margin for Q3 was 34.66%, down 3.42 percentage points year-on-year, with a gross profit margin of 51.42%, down 8.77 percentage points year-on-year [4]. - The increase in management and financial expenses contributed to the decline in profitability [4]. Growth Prospects - The company has a construction in progress balance of 887 million, a 94.33% increase from the beginning of the year, indicating strong investment in future capacity [4]. - The forecasted net profits for 2024-2026 suggest robust growth potential, with significant increases expected in revenue and profitability [5].