Create Century(300083) Soochow Securities·2024-10-30 03:01Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has shown significant revenue growth, with a 17.59% year-on-year increase in revenue for the first three quarters of 2024, reaching 3.276 billion yuan. The net profit attributable to shareholders increased by 24.35% year-on-year to 202 million yuan, with a notable 89.59% increase in non-recurring net profit [2] - The strong performance is attributed to the recovery in the 3C industry and a substantial increase in sales of the company's flagship product, the drilling and tapping machine [2][4] - The company experienced a significant quarterly revenue increase of 66.13% in Q3 2024, with net profit rising by 200.14% year-on-year, although profits were impacted by tax payments and penalties totaling 70 million yuan [2] Financial Performance Summary - The company's gross margin for the first three quarters of 2024 was 23.16%, an increase of 0.49 percentage points year-on-year, with Q3 2024 gross margin at 23.50%, up 2.46 percentage points year-on-year [3] - The net profit margin for the first three quarters was 6.45%, up 0.19 percentage points year-on-year, while Q3 saw a net profit margin of 3.81%, reflecting a year-on-year increase of 9.71% [3] - The company has reduced its expense ratio significantly, with a total expense ratio of 13.22%, down 2.57 percentage points year-on-year, indicating improved operational efficiency [3] Product and Market Insights - The company is positioned as a leading domestic manufacturer of drilling and tapping machines, benefiting from the ongoing recovery in the consumer electronics sector, with a reported 180% year-on-year increase in shipments in the first half of 2024 [4] - The company has also made strides in developing five-axis CNC machines, achieving sales growth of over 516.21% year-on-year in the first half of 2024, indicating strong market acceptance and potential for future revenue growth [4] Earnings Forecast and Valuation - The report adjusts the company's net profit forecasts for 2024-2026 to 355 million yuan (previously 393 million), 517 million yuan (unchanged), and 644 million yuan (previously 645 million), respectively. The current stock price corresponds to dynamic P/E ratios of 36, 25, and 20 times for the respective years [4]