SNS(300470) 国泰君安·2024-10-29 21:36Investment Rating - The report maintains a "Buy" rating for the company [5][17]. Core Views - The company's performance meets expectations with significant growth in contract liabilities. For the first three quarters of 2024, the company achieved revenue of 1.143 billion yuan, a year-on-year increase of 15.56%, and a net profit attributable to shareholders of 271 million yuan, up 9.15% year-on-year [4][3]. - The company is focusing on mechanical seals while continuously expanding into rubber and plastic seals and special pumps and valves markets. Increased R&D investment and acquisitions are driving upstream integration [3][4]. Financial Summary - For Q1-Q3 2024, the company reported a gross margin of 47.61%, down 2.61 percentage points year-on-year, and a net profit margin of 23.78%, down 1.35 percentage points year-on-year. The decline in gross margin is primarily due to the increased proportion of low-margin incremental business [4]. - As of September 2024, the company's contract liabilities reached 101 million yuan, a quarter-on-quarter increase of 48.53% [4]. - The company plans to maintain EPS forecasts for 2024, 2025, and 2026 at 1.89 yuan, 2.24 yuan, and 2.65 yuan respectively, with a target price of 42.56 yuan based on a PE ratio of 19 times for 2025 [4][5]. Market Position and Strategy - The company is enhancing its competitive edge in the mechanical seal sector despite a slowdown in new projects in the petrochemical industry and increased competition. It has achieved notable success in offshore pipeline projects [4]. - The subsidiary, Yutai Technology, is seeing initial success in cost reduction and efficiency improvements while actively exploring markets in coal mining and shield tunneling [4]. - The acquisition of KS GmbH is progressing, which will enhance supply chain stability by integrating upstream laminated materials and guiding rings [4].