JJHB(603279) 西南证券·2024-10-30 05:12Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company reported a revenue of 4.7 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.2%, while the net profit attributable to shareholders decreased by 10.1% to 670 million yuan [1]. - The third quarter revenue was 1.58 billion yuan, down 1.0% year-on-year and 2.7% quarter-on-quarter, with a net profit of 210 million yuan, reflecting a 20.8% year-on-year decline [1]. - The decline in profit margins is attributed to price reductions on some products, leading to a comprehensive gross margin of 29.1% for the first three quarters, down 3.7 percentage points year-on-year [1][2]. Summary by Sections Financial Performance - The company’s operating cash flow improved significantly, with a net cash flow from operating activities of 590 million yuan, a year-on-year increase of 492.7% [2]. - The gross margin for the third quarter was 28.4%, down 4.9 percentage points year-on-year, while the net margin was 13.1%, down 3.3 percentage points year-on-year [1][2]. Cost Management - The company has effectively controlled its expenses, with a period expense ratio of 8.9% for the first three quarters, down 1.4 percentage points year-on-year [2]. - The sales, management, R&D, and financial expense ratios showed minor fluctuations, indicating stable cost management practices [2]. Market Opportunities - Domestic demand for equipment upgrades is expected to provide incremental growth, while the overseas market presents significant potential, estimated to be 2-3 times the size of the domestic market [2]. - The company holds over 40% market share in the domestic filter press market, with ongoing efforts to expand its presence internationally [2]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 is 1.03 billion yuan, 1.18 billion yuan, and 1.32 billion yuan, respectively, with a compound annual growth rate of 9.4% [3]. - The projected price-to-earnings ratios for the next three years are 11, 9, and 8 times, respectively, reflecting the company's leading position in the filter press market and expected growth [3].