KEBODA(603786) Southwest Securities·2024-10-30 06:57Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 59.14 CNY and a target price not specified for the next 6 months [1]. Core Insights - The company's Q3 performance exceeded expectations, with a revenue of 15.3 billion CNY in Q3, representing a year-on-year increase of 24.2% and a quarter-on-quarter increase of 15.5%. The net profit for Q3 was 2.35 billion CNY, up 30.8% year-on-year and 54.1% quarter-on-quarter [1][2]. - The company has effectively controlled its expense ratio, achieving a Q3 expense ratio of 12.3%, down 3.7 percentage points year-on-year and 2.5 percentage points quarter-on-quarter, indicating ongoing cost reduction and efficiency improvements [2]. - The company has expanded its client base, securing 43 new projects in the first half of the year, with an expected product lifecycle sales volume of approximately 75 million units. As of June 2024, the company has 136 projects under research, with an expected lifecycle sales volume exceeding 280 million units [2][3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 42.73 billion CNY, a year-on-year increase of 33.8%, and a net profit of 6.07 billion CNY, also up 33.2%. The gross margin was 29.3%, down 1.5 percentage points year-on-year, while the net margin was 14.9%, down 0.3 percentage points year-on-year [1]. - The company’s revenue and net profit for Q3 were 15.3 billion CNY and 2.35 billion CNY, respectively, with significant growth compared to the previous year and quarter [1]. Product and Market Expansion - The company is actively promoting new products and accelerating its global strategy, with significant progress in entering the supply chains of major automotive brands such as Volkswagen, BMW, Porsche, and Audi [3]. - Domestic and international revenues grew by 37.5% and 39.6%, respectively, indicating synchronized growth in global markets [3]. Earnings Forecast - The company’s EPS is projected to be 2.14 CNY, 2.66 CNY, and 3.32 CNY for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 28, 22, and 18. The compound annual growth rate (CAGR) for net profit is expected to be 30.1% [3][4].