Autowell(SH:688516) SINOLINK SECURITIES·2024-10-29 12:50Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [2][8]. Core Insights - The company reported a revenue of 6.921 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 63.27%. The net profit attributable to shareholders was 1.166 billion RMB, up 36.91% year-on-year [1]. - The company has a healthy cash flow, with operating cash flow in Q3 reaching 421 million RMB, a significant increase of 84.98% year-on-year and 116.55% quarter-on-quarter [1]. - Despite a decline in new orders due to industry expansion slowing down, the company has seen a notable increase in overseas orders, with a total of 1.3 billion RMB in new orders signed in September [1]. Summary by Sections Performance Overview - For Q3 2024, the company achieved a revenue of 2.504 billion RMB, a year-on-year increase of 45.42% and a quarter-on-quarter increase of 2.08%. The net profit for Q3 was 397 million RMB, up 20.58% year-on-year but down 8.94% quarter-on-quarter [1]. Order and Cash Flow Analysis - As of September 30, 2024, the company had an order backlog of 13.434 billion RMB, a year-on-year increase of 16.99%, but a decrease of 6.33% from June 2024. New orders for the first three quarters totaled 8.707 billion RMB, down 3.17% year-on-year, with Q3 new orders at 2.422 billion RMB, down 24.60% year-on-year and 14.72% quarter-on-quarter [1]. - The company is focusing on controlling receivables risk, leading to improved cash flow from operations [1]. Business Expansion and Market Position - The company is experiencing growth in overseas markets, with a significant increase in overseas orders and a gross margin of 44.1% in H1 2024, which is 12 percentage points higher than domestic operations [1]. - The company has secured production orders in the semiconductor sector and has established itself as a top supplier in the energy storage equipment market, with over 200 production lines shipped by September 2024 [1]. Financial Forecast - The earnings forecast for 2024-2026 has been adjusted to 1.568 billion RMB, 1.662 billion RMB, and 1.823 billion RMB respectively, with corresponding EPS of 4.99, 5.29, and 5.80 RMB. The current stock price corresponds to P/E ratios of 11.5, 10.9, and 9.9 times for the respective years [2].