Neway CNC(688697) 国金证券·2024-10-30 06:55Investment Rating - The report maintains an "Accumulate" rating for the company [3][6]. Core Views - The company reported a revenue of 1.834 billion RMB for the first three quarters of 2024, reflecting a year-on-year growth of 5.45%, while the net profit attributable to shareholders decreased by 3.53% to 228 million RMB [3][4]. - The machine tool industry is currently under pressure, but is expected to benefit from economic stimulus policies leading to a recovery in the future [4]. - The company's gross margin improved in Q3 2024, reaching 25.73%, although it is still lower than the previous year [4]. - The company is on track to achieve full production capacity for its third phase of investment by the end of 2024, with the fourth phase expected to be operational in 2025, enhancing delivery capabilities [5][6]. Summary by Sections Performance Analysis - In Q3 2024, the company achieved a revenue of 672 million RMB, a year-on-year increase of 6.37% and a quarter-on-quarter increase of 9.42%. The net profit for the same period was 83 million RMB, down 1.12% year-on-year but up 10.18% quarter-on-quarter [3][4]. Industry Outlook - The machine tool industry is experiencing a downturn, with key enterprises reporting a 3.5% decline in revenue and a 9.9% drop in total profits from January to August 2024. However, new orders for metal processing machine tools increased by 3.5% [4]. Capacity Expansion - The third phase of the company's investment project began production in July 2022 and is expected to reach full capacity by the end of 2024. The fourth phase is under construction and is anticipated to be operational in 2025 [5]. Profit Forecast and Valuation - The profit forecast has been adjusted, with expected net profits of 335 million RMB, 396 million RMB, and 476 million RMB for 2024, 2025, and 2026 respectively. The corresponding price-to-earnings ratios are projected at 16X, 14X, and 12X [6].