CAERI(601965) Shanxi Securities·2024-10-29 14:55Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [6]. Core Views - The company has shown strong revenue growth, with a 18.12% year-on-year increase in revenue for the first three quarters of 2024, reaching 3.047 billion yuan [3][4]. - The net profit for the same period increased by 18.77% year-on-year, amounting to 670 million yuan [3][4]. - The company is accelerating its layout in the new energy vehicle (NEV) aftermarket business, planning to invest up to 900 million yuan to establish a wholly-owned subsidiary focused on automotive aftermarket technical services and NEV-specific detection equipment [2][4]. Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 42.21% and a net margin of 23.50%, with a slight decrease in gross margin compared to the previous year [4]. - The company’s return on equity (ROE) was reported at 10.03%, reflecting a year-on-year increase of 0.77 percentage points [4]. - The revenue from the automotive technical services segment reached 2.591 billion yuan, accounting for 85.03% of total revenue, while the equipment manufacturing segment generated 456 million yuan, making up 14.97% [4]. Future Outlook - The company is expected to benefit from the growing trend of R&D investment in the automotive industry, particularly in the context of the development of new energy and intelligent connected vehicles [6]. - The projected net profits for the years 2024 to 2026 are estimated at 951 million yuan, 1.098 billion yuan, and 1.291 billion yuan, respectively, indicating a positive growth trajectory [6][8]. - The establishment of the new subsidiary is anticipated to enhance the company's core competitiveness and open new growth avenues in the automotive aftermarket services [5][6].