Appo(688007) Changjiang Securities·2024-10-29 06:41Investment Rating - The investment rating for the company is "Buy" and is maintained [3][5]. Core Views - The company reported a year-on-year revenue increase of 4.18% for the first three quarters of 2024, achieving a total revenue of 1.72 billion yuan, while the net profit attributable to shareholders decreased by 66.59% to 42.95 million yuan [3][4]. - The company's vehicle optical business has shown significant growth, with revenues reaching 458 million yuan in the first three quarters of 2024, and approximately 217 million yuan in the third quarter alone, marking its entry into the revenue contribution phase [3][4]. - The company is focusing on a development strategy of "core technology + core components + application scenarios," which is expected to drive future growth [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 30.82%, a decrease of 7.30 percentage points year-on-year, with the third quarter gross margin at 30.42%, down 8.49 percentage points [3]. - The net profit attributable to shareholders for the third quarter of 2024 turned positive on a quarter-on-quarter basis, with a 103.22% increase in non-recurring net profit [3]. Business Development - The company has maintained a leading technological advantage in the vehicle optical field and is expanding its application areas, which is expected to become a new growth engine [4]. - The launch of the world's first ALL-in-ONE laser headlight significantly reduces system costs and meets various consumer demands [4]. - As of October 2024, the company has received eight project confirmations in the vehicle sector, enhancing the certainty of its vehicle business prospects [4]. Future Projections - The company expects net profits attributable to shareholders to be 64 million yuan, 122 million yuan, and 169 million yuan for the years 2024, 2025, and 2026, respectively [5].