NAIPU MINING(SZ:300818) Huaxin Securities·2024-10-29 11:13Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company has achieved significant revenue and profit growth in the first three quarters of 2024, with operating income reaching 921 million yuan, a year-on-year increase of 41.71%, and net profit attributable to shareholders of 120 million yuan, up 48.78% [1] - The company specializes in high-performance polymer composite materials for the mining industry, particularly in rubber wear-resistant parts, which have a low current market penetration of less than 15%, indicating substantial growth potential [1] - The company has made significant strides in international expansion, with overseas revenue reaching 630 million yuan, accounting for 68.36% of total revenue, reflecting a year-on-year increase of 99.55% [1][2] - The company has effectively controlled its expense ratio, leading to improved profitability, with a gross profit margin of 37.36% and a net profit margin of 13.29% [2] Summary by Sections Financial Performance - For Q1-Q3 2024, the company reported operating income of 921 million yuan, net profit of 120 million yuan, and a non-recurring net profit of 117 million yuan, showing strong growth across all metrics [1] - The third quarter alone saw operating income of 294 million yuan, a year-on-year increase of 17.77%, and net profit of 36 million yuan, up 30.74% [1] Market Position and Strategy - The company has a first-mover advantage in the rubber wear-resistant parts market, benefiting from the ongoing replacement process of traditional metal materials [1] - The establishment of a new production base in Zambia is expected to enhance the company's capacity and competitiveness in the African market [1] Profitability and Expense Management - The company has maintained a good control over its expense ratio, with a total expense ratio of 20.46%, down 1.23 percentage points year-on-year [2] - The sales expense ratio is 5.62%, management expense ratio is 10.94%, and R&D expense ratio is 2.74%, indicating effective cost management [2] Earnings Forecast - The company is projected to achieve revenues of 1.284 billion yuan in 2024, 1.493 billion yuan in 2025, and 1.846 billion yuan in 2026, with corresponding EPS of 1.00 yuan, 1.33 yuan, and 1.76 yuan [3][5] - The current stock price corresponds to a PE ratio of 28.0 for 2024, 20.9 for 2025, and 15.9 for 2026, supporting the "Buy" rating [3]