CNRE(600111) 国金证券·2024-10-30 06:56Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [2][10]. Core Views - The company reported a revenue of 21.56 billion yuan for the first three quarters of 2024, a year-on-year decrease of 13.50%, with a net profit attributable to shareholders of 405 million yuan, down 70.64% year-on-year [2]. - In Q3 2024, the company achieved a revenue of 8.57 billion yuan, a quarter-on-quarter increase of 18.56% and a year-on-year increase of 1.54%, with a net profit of 360 million yuan, up 10.94% year-on-year [2]. - The increase in sales volume and prices of key products such as rare earth metals and magnetic materials contributed to the improved performance in Q3 2024 [2]. - The company has established a joint venture to enhance its processing capabilities in the downstream sector, focusing on high-performance neodymium-iron-boron magnetic materials [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 21.56 billion yuan, down 13.50% year-on-year, and a net profit of 405 million yuan, down 70.64% year-on-year [2]. - Q3 2024 saw a revenue of 8.57 billion yuan, with a quarter-on-quarter increase of 18.56% and a year-on-year increase of 1.54% [2]. - The sales volume of key products in Q3 2024 increased, with rare earth metals and magnetic materials showing significant growth [2]. Cost and Margin Analysis - The gross profit and gross margin for Q3 2024 were 916 million yuan and 10.69%, respectively, reflecting a quarter-on-quarter increase of 54.47% and 2.48 percentage points [2]. - The company experienced a slight decrease in raw material costs, contributing to improved margins [2]. Future Outlook - The company expects revenues of 30.03 billion yuan, 36.05 billion yuan, and 40.47 billion yuan for 2024, 2025, and 2026, respectively [2]. - Net profits are projected to be 1.06 billion yuan, 2.06 billion yuan, and 2.67 billion yuan for the same years, with corresponding EPS of 0.29 yuan, 0.57 yuan, and 0.74 yuan [2]. - The report anticipates continued upward pressure on rare earth prices due to supply disruptions and regulatory changes, positioning the company to benefit as a market leader [2].