Jiangsu Hengli Hydraulic CO.(601100)2024-10-29 05:08Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company's performance is in line with expectations, with a double-digit revenue growth maintained in Q3. Future focus will be on the ramp-up of new business [2][4] - The company is expected to achieve steady growth due to its internationalization, diversification, and electrification strategies [4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 6.936 billion yuan, a year-on-year increase of 9.32%, and a net profit attributable to shareholders of 1.791 billion yuan, up 2.16%. In Q3 alone, revenue and profit were 2.103 billion yuan and 504 million yuan, respectively, reflecting year-on-year growth of 11.12% and 6.07% [4] - The company's contract liabilities increased by 32.05% year-on-year, indicating a rise in advance payments and a healthy order situation [4] Profitability Metrics - The gross margin and net margin for the first three quarters of 2024 were 41.46% and 25.87%, with slight changes from the previous year. In Q3, these margins were 41.03% and 23.99%, showing a slight decline from Q2 [4] Strategic Initiatives - The company is accelerating its internationalization strategy, with compact hydraulic sales growing rapidly and market share expanding domestically. Overseas revenue in H1 2024 increased by 15.29% [4] - The company is also focusing on electrification and automation in the industrial sector, with ongoing projects in linear actuators and ball screw products [4] Valuation and Target Price - The target price has been adjusted to 71.10 yuan, based on a 30x PE ratio for 2025, reflecting the company's position as a leader in hydraulic components [4]