KINGLAI MATERIALS(SZ:300260) Soochow Securities·2024-10-29 17:37Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's performance continues to grow, with Q3 net profit under short-term pressure due to increased R&D and financial expenses [2] - The company is expected to benefit from the domestic substitution in the semiconductor and food sectors, showcasing strong growth potential [4] - The profit forecast for 2024-2026 has been adjusted downwards, with the current market value corresponding to P/E ratios of 36, 22, and 16 times respectively [5] Financial Performance Summary - For Q1-Q3 2024, the company achieved revenue of 2.161 billion yuan, a year-on-year increase of 9.4%, and a net profit of 198 million yuan, up 17.6% year-on-year [2] - The gross margin for Q1-Q3 2024 was 25.1%, with a net profit margin of 8.5% [3] - As of Q3 2024, the company's contract liabilities stood at 138 million yuan, and inventory was 1.576 billion yuan, indicating stability in cash flow and operations [3] Sector Growth Potential - The semiconductor sector is expected to see significant growth, with global semiconductor sales projected to increase by 11.6% to 18.3% from Q4 2023 to Q2 2024 [4] - The food sector is anticipated to grow, with the sterile packaging market in China expected to exceed 25 billion yuan by 2025 [4] - The pharmaceutical sector is also showing promise, with products recognized by well-known domestic and international companies [4]