Shanghai Liangxin Electrical (002706) 信达证券·2024-10-30 07:31Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The report highlights that the company is awaiting industry recovery, and the significant share buyback reflects confidence in its future performance [3] - The company reported a revenue of 3.124 billion yuan for the first three quarters of 2024, a year-on-year decrease of 9.58%, and a net profit attributable to shareholders of 311 million yuan, down 25.04% year-on-year [3] - The gross margin for Q3 2024 was 29.64%, showing a decline compared to previous quarters, with a 2.51 percentage point drop from Q2 2024 [3] - The company has increased its R&D investment, with an R&D expense ratio of 7.09% for the first three quarters of 2024, which is expected to support future business growth [3] - The company announced a share repurchase plan with a total fund of no less than 50 million yuan and up to 100 million yuan, followed by another plan for 200 million to 400 million yuan [3] - Profit forecasts for 2024-2026 are 401 million, 491 million, and 598 million yuan respectively, with year-on-year changes of -21%, +22%, and +22% [3] - The market capitalization corresponds to a PE ratio of 19/16 times for 2024-2025, maintaining a "Buy" rating [3] Financial Summary - For 2024, the company expects total revenue of 4.443 billion yuan, a decrease of 3.1% year-on-year, with a net profit of 401 million yuan, down 21.4% year-on-year [5] - The gross margin is projected to be 30.2% for 2024, with a gradual increase to 31.2% by 2026 [5] - The return on equity (ROE) is expected to be 9.4% in 2024, improving to 12.6% by 2026 [5] - The diluted EPS is forecasted to be 0.36 yuan in 2024, increasing to 0.53 yuan by 2026 [5] - The company’s total assets are projected to reach 6.075 billion yuan in 2024, growing to 7.095 billion yuan by 2026 [6]