FORYOU(SZ:002906) Southwest Securities·2024-10-30 06:58Investment Rating - The report maintains a "Buy" rating for Huayang Group (002906) [1][3] Core Views - The company reported significant year-on-year growth in revenue and net profit for the first three quarters of 2024, with revenue reaching 6.841 billion yuan, up 42.6% year-on-year, and net profit attributable to shareholders at 465 million yuan, up 56.2% year-on-year [1] - The gross margin remained stable, and effective cost control was noted, with a decrease in expense ratios contributing to improved profitability [1][2] - The automotive electronics segment showed robust growth, with revenue of 3.07 billion yuan in the first half of 2024, up 65.4% year-on-year, accounting for 73% of total revenue [2] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 2.648 billion yuan, a year-on-year increase of 37.3% and a quarter-on-quarter increase of 20.2% [1] - The net profit for Q3 2024 was 178 million yuan, reflecting a year-on-year increase of 53.5% and a quarter-on-quarter increase of 22.9% [1] - The gross margin for Q3 was 21.1%, with a slight year-on-year decrease of 0.8 percentage points [1] Business Segments - The automotive electronics segment's revenue growth was driven by new product lines entering mass production, including cockpit domain controllers and digital acoustics [2] - The precision die-casting business also saw a revenue increase of 23.6% year-on-year, with significant sales growth in components related to optical communication modules [2] Research and Development - The company increased its R&D investment to 531 million yuan in the first three quarters of 2024, a 21.8% year-on-year increase, representing 7.8% of total revenue [2] - Ongoing capacity expansion projects are on track, with new facilities in Huizhou and Zhejiang expected to contribute to future growth [2] Earnings Forecast - The projected EPS for 2024, 2025, and 2026 is 1.28 yuan, 1.55 yuan, and 1.86 yuan respectively, with a corresponding PE ratio of 24, 20, and 16 [3]