XTC(SH:600549) Hua Yuan Zheng Quan·2024-10-29 13:05Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's revenue for the first three quarters of 2024 was 26.37 billion yuan, a year-on-year decrease of 10.7%, while the net profit attributable to shareholders was 1.4 billion yuan, an increase of 20.8% year-on-year [1] - The company's tungsten and molybdenum business saw a decline in profitability in Q3 due to falling prices and decreased sales volume of fine tungsten wire [2] - The energy new materials segment showed improved profitability in Q3, driven by increased demand and sales growth [4] - The rare earth business demonstrated a gradual recovery in profitability, with stable growth in magnetic material sales [4] - The company is positioned as a materials platform enterprise with growth potential across its tungsten, rare earth, and cathode materials segments [5] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 9.21 billion yuan, a year-on-year decrease of 14.7%, but a quarter-on-quarter increase of 3.5% [1] - The net profit for Q3 was 390 million yuan, a year-on-year increase of 4.3% but a quarter-on-quarter decrease of 34.6% [1] - The company’s total revenue for the first three quarters was 26.37 billion yuan, with a net profit of 1.4 billion yuan [1] Business Segments - Tungsten and Molybdenum: Q3 revenue was 4.47 billion yuan, a year-on-year increase of 0.1% but a quarter-on-quarter decrease of 5.6% [2] - Energy New Materials: Q3 revenue was 3.582 billion yuan, a year-on-year decrease of 28.4% but a quarter-on-quarter increase of 19.4% [4] - Rare Earth: Q3 revenue was 1.15 billion yuan, a year-on-year decrease of 11.8% but a quarter-on-quarter increase of 0.6% [4] Profitability Metrics - The profit margin for the tungsten and molybdenum business in Q3 was 11.9%, down 0.8 percentage points year-on-year and 6.8 percentage points quarter-on-quarter [2] - The profit margin for the energy new materials segment was 3.9%, with a year-on-year increase of 0.4 percentage points [4] - The rare earth business turned profitable in Q3 with a profit margin of 5.5%, up 8.7 percentage points year-on-year [4] Future Outlook - The company expects net profits for 2024, 2025, and 2026 to be 1.866 billion yuan, 2.136 billion yuan, and 2.378 billion yuan respectively, with year-on-year growth rates of 16.53%, 14.45%, and 11.32% [5] - The current stock price corresponds to price-to-earnings ratios of 15, 13, and 12 for the years 2024, 2025, and 2026 respectively [5]