Wetown Electric(688226) 民生证券·2024-10-29 09:40Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company reported a revenue of 2.745 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 36.73%, and a net profit attributable to shareholders of 109 million yuan, up 28.64% year-on-year [1]. - In Q3 2024, the company experienced a revenue decline of 8.31% year-on-year and 15.55% quarter-on-quarter, with a net profit of 30.26 million yuan, down 34.56% year-on-year and 30.40% quarter-on-quarter [1][2]. - The company has established a joint venture with ABB to enhance its market share in low-voltage bus products in China, which is expected to improve competitiveness and market coverage [4]. Financial Performance - The company's gross margin and net margin for Q3 2024 were 16.26% and 3.54%, respectively, showing a year-on-year decrease of 1.61 percentage points and 1.63 percentage points [2]. - The company’s three main business segments—distribution equipment, energy storage systems, and photovoltaic new materials—achieved revenue growth rates of 16.99%, 114.42%, and 40.53% year-on-year, respectively [3]. - Revenue forecasts for 2024 to 2026 are projected at 4.052 billion yuan, 5.919 billion yuan, and 7.247 billion yuan, with net profits of 152 million yuan, 254 million yuan, and 383 million yuan, respectively [4][5].