UE(SH:603600) Haitong Securities·2024-10-29 07:17Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company reported a revenue of 3.39 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 35.6%. The net profit attributable to the parent company was 220 million yuan, up 6.5% year-on-year, while the net profit excluding non-recurring items also reached 220 million yuan, increasing by 14.9% year-on-year [5][6]. - In Q3 2024, the company achieved a revenue of 1.34 billion yuan, a year-on-year increase of 38.8%, and a net profit of 98 million yuan, up 42.3% year-on-year. The revenue growth is attributed to improved external demand and accelerated volume from new customers, channels, and projects [5][6]. - The company is actively pursuing a global layout strategy for its export business, with ongoing construction of production bases in Vietnam and Romania. The Vietnam base has begun shipping to the U.S., and the first phase of construction is underway [5][6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 3.39 billion yuan, a 35.6% increase year-on-year, and a net profit of 220 million yuan, a 6.5% increase year-on-year. The net profit excluding non-recurring items was also 220 million yuan, reflecting a 14.9% increase year-on-year [5][6]. - In Q3 2024, the company achieved a revenue of 1.34 billion yuan, a 38.8% increase year-on-year, and a net profit of 98 million yuan, a 42.3% increase year-on-year [5][6]. Profitability and Margins - The comprehensive gross margin for the first three quarters of 2024 was 22.68%, a decrease of 0.4 percentage points. The period expense ratio was 14.85%, an increase of 1.3 percentage points [5][6]. - The company’s revenue growth is supported by new customer acquisition and channel expansion, indicating a positive outlook for future performance [5][6]. Future Outlook - The company is expected to achieve net profits of 330 million yuan and 400 million yuan for 2024 and 2025, respectively, representing year-on-year increases of 11% and 20% [6][7]. - The estimated reasonable value range for the company is between 11 to 13 yuan based on a price-to-earnings (PE) ratio of 11 to 13 times for 2024 [6][7].