GUOMAO REDUCER(603915) Soochow Securities·2024-10-30 00:30Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's performance is under short-term pressure due to market competition and product price declines, leading to a significant drop in profitability [2][3] - The company is a leading domestic reducer manufacturer, with a platform-based layout that opens up growth opportunities in specialized and mechatronic fields [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 1.927 billion, down 4.17% year-on-year, and a net profit attributable to shareholders of 209 million, down 21.68% year-on-year [2] - The gross profit margin for the first three quarters of 2024 was 22.89%, a decrease of 3.28 percentage points year-on-year, with a further decline in Q3 to 21.66% [3] - The net profit margin for Q3 2024 was 9.79%, down 4.18 percentage points year-on-year, primarily due to the decline in gross margin and increased asset impairment losses [3] Earnings Forecast and Valuation - The report revises the company's net profit forecasts for 2024-2026 to 314 million (previously 495 million), 421 million (previously 563 million), and 490 million (previously 648 million) respectively [4] - The current stock price corresponds to dynamic P/E ratios of 21, 15, and 13 times for 2024, 2025, and 2026 respectively [4]