Ningbo Sunrise(SZ:002937) Soochow Securities·2024-10-30 04:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue and profit are under short-term pressure due to a decline in electric vehicle sales from core customers, alongside increased depreciation and foreign exchange losses impacting short-term profitability [2] - The automotive electronics business is expanding with new customer acquisitions, while the smart terminal business is awaiting a recovery in downstream demand [3] - Long-term growth potential in the automotive electronics sector is highlighted, with ongoing efforts to enhance profitability through customer expansion [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 1.48 billion yuan, a year-on-year decrease of 0.6%, and a net profit attributable to shareholders of 190 million yuan, a year-on-year increase of 1.3% [2] - In Q3 2024, the company reported revenue of 470 million yuan, down 8.6% year-on-year and 5.9% quarter-on-quarter, with a net profit of 45 million yuan, down 39.6% year-on-year and 40.2% quarter-on-quarter [2] - The gross margin for Q3 2024 was 24.4%, a decrease of 3.06 percentage points from the previous quarter [2] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 270 million, 330 million, and 400 million yuan respectively, with corresponding P/E ratios of 19, 16, and 13 times [4] - The company is positioned as a leading domestic player in automotive embedded plastic components, with a focus on long-term growth in the automotive electronics business [4] Market Data - The closing price is 17.29 yuan, with a market capitalization of approximately 5.15 billion yuan [5] - The price-to-book ratio is 3.47 [5] Basic Data - The company has a net asset value per share of 4.98 yuan and a debt-to-asset ratio of 36.69% [6]