WEIXING(SZ:002003) EBSCN·2024-10-29 07:14Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's revenue and net profit showed strong growth in the first three quarters of 2024, with revenue increasing by 23.3% year-on-year to 3.58 billion yuan and net profit rising by 17.2% to 620 million yuan [1]. - The decline in net profit in Q3 was primarily due to a change in expense accrual methods, which is expected to ease in Q4, leading to a smoother annual impact [2]. - The company is expected to maintain double-digit revenue growth and improve its gross margin, supported by capacity expansion in Vietnam and enhanced operational efficiency domestically [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 42.7%, up 1.1 percentage points year-on-year [1]. - The expense ratio increased by 1.4 percentage points to 21.8%, mainly due to a change in the bonus accrual method, which added approximately 89.32 million yuan to expenses [1]. - Cash flow from operating activities for the first three quarters was 74,000 yuan, a 53.4% increase year-on-year [1]. Future Projections - The company is projected to have earnings per share (EPS) of 0.61, 0.70, and 0.79 yuan for 2024, 2025, and 2026 respectively, with price-to-earnings (P/E) ratios of 22 and 19 for 2024 and 2025 [2]. - Revenue is expected to grow at rates of 18.3% in 2024, 13.1% in 2025, and 10.1% in 2026 [3]. Market Position - The company is recognized as a leader in the auxiliary materials sector, with ongoing international expansion and a focus on enhancing its competitive advantage [2].