KINGCLEAN(603355)2024-10-29 06:12Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market benchmark [6][7]. Core Insights - The company's ODM and core component segments are on an upward trajectory, contributing to revenue performance. The acquisition of Lihua Technology is expected to bring additional growth. However, the company has adjusted its profit forecasts for 2024-2026 due to the impact of currency fluctuations and a sluggish domestic sales environment [6][7]. - The company is projected to achieve a net profit attributable to shareholders of 1.19 billion, 1.24 billion, and 1.36 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 6.5%, 4.5%, and 9.2% [6][7]. Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 7.246 billion yuan, a year-on-year increase of 12%. The net profit attributable to shareholders was 879 million yuan, up 6% year-on-year [7][8]. - The company’s revenue for 2024 is expected to reach 9.878 billion yuan, with a projected growth rate of 12.3%. The net profit is forecasted to be 1.189 billion yuan, reflecting a growth rate of 6.5% [6][10]. - The gross profit margin is expected to stabilize around 24.5% for 2024, with a return on equity (ROE) projected at 24.3% [6][10]. Business Segment Analysis - The ODM business has shown a recovery, with revenue growth of 20% year-on-year in Q1 2024, supported by demand recovery in the European and American retail sectors. The company is also expanding its overseas manufacturing capabilities to mitigate trade risks [8][9]. - The core component business is experiencing stable growth, with an expected new business volume of around 1 billion yuan for the year. The company has established a strong customer base, including major automotive manufacturers [9].