FSL(000541) Tianfeng Securities·2024-10-29 09:39Investment Rating - The investment rating for the company is "Buy" with a target price indicating an expected return of over 20% within the next six months [3][12]. Core Views - The company plans to acquire Easy Light Intelligent to enhance its influence in the smart lighting business, which is expected to significantly boost its market competitiveness [2][6]. - The company reported a revenue of 6.887 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.33%, and a net profit of 251 million yuan, up 5.12% year-on-year [1][2]. - The automotive lighting business continues to show growth, with the company developing six new automotive manufacturers and launching ten new model projects in the first half of 2024 [1][2]. Financial Performance - For the first three quarters of 2024, the gross margin was 19.08%, an increase of 0.4 percentage points year-on-year, while the net margin was 4.88%, up 0.16 percentage points year-on-year [2][6]. - The company has seen an increase in expense ratios, with sales, management, R&D, and financial expense ratios rising compared to the previous year [2][6]. - The company’s revenue forecast for 2024 is 9.33 billion yuan, with net profits expected to reach 321.76 million yuan, reflecting a growth rate of 10.82% [4][6]. Strategic Developments - The acquisition of Easy Light Intelligent is aimed at strengthening the company's smart lighting segment, which had a revenue of 880 million yuan in 2023 [2][6]. - The company is actively expanding its automotive lighting production capacity and has established partnerships with major automotive manufacturers [1][2]. - The focus on emerging lighting areas, such as smart streetlights and marine lighting, is expected to drive future growth [2][6].