KDL(SZ:002850) SINOLINK SECURITIES·2024-10-29 10:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][11]. Core Views - The company has reported better-than-expected performance, with a revenue of 8.59 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 10.6%, and a net profit of 1.02 billion RMB, up 27.9% year-on-year [2][3]. - The company is expected to continue its revenue and profit growth in Q4 compared to Q3, with a projected shipment growth of 20%-30% in 2025, driven by increasing overseas demand [3][4]. Summary by Sections Performance Overview - For the first three quarters of 2024, the company achieved a revenue of 85.9 billion RMB, a net profit of 10.2 billion RMB, and a non-recurring net profit of 9.85 billion RMB, all showing significant year-on-year growth [2]. - In Q3 alone, the company reported a revenue of 31.5 billion RMB, a quarter-on-quarter increase of 7.1%, and a net profit of 3.68 billion RMB, up 8.5% quarter-on-quarter [2]. Operational Analysis - The company's gross margin for the first three quarters of 2024 was 23.2%, a slight decrease of 0.1 percentage points year-on-year, while the net profit margin remained stable at 11.5%, an increase of 1.5 percentage points year-on-year [3]. - The company has successfully maintained its profitability gap with second-tier competitors, attributed to effective cost and expense control, as well as superior product offerings and customer distribution [3]. Future Outlook - The company anticipates continued growth in both revenue and profit in Q4 compared to Q3, with a forecasted shipment increase of 20%-30% in 2025, and a potential doubling of overseas revenue as demand gradually increases [3][4]. - The company is positioned as a global leader in structural components, benefiting from advanced technology, strong customer loyalty, and cost reduction capabilities [4].