SHUANGHUAN COMPANY(002472) Minsheng Securities·2024-10-30 10:30Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 28.75 CNY per share, corresponding to a PE ratio of 23 for 2024 [4]. Core Views - The company reported a revenue of 6.74 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 14.8%, and a net profit of 740 million CNY, up 25.1% year-on-year [2]. - The gross margin improved to 24.0% in Q3 2024, benefiting from increased margins in passenger and commercial vehicle gears, as well as cost optimization measures [2]. - The company is expanding its global footprint, with a significant market share in the domestic new energy vehicle sector and plans to accelerate overseas factory construction in Hungary [2]. - The smart actuator segment is experiencing rapid growth, with applications in various intelligent devices, and the company is well-positioned to capture new market opportunities [2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 2.42 billion CNY, a 10.7% increase year-on-year and a 7.7% increase quarter-on-quarter [2]. - The net profit for Q3 2024 was 265 million CNY, reflecting a 20.0% year-on-year growth and a 5.3% quarter-on-quarter increase [2]. - The company forecasts revenues of 10.32 billion CNY, 12.45 billion CNY, and 14.94 billion CNY for 2024, 2025, and 2026 respectively, with net profits projected at 1.05 billion CNY, 1.34 billion CNY, and 1.66 billion CNY for the same years [6][7]. Growth Drivers - The company is leveraging its strong position in the new energy vehicle market, with a domestic market share of 40%-50% for its new energy gear products [2]. - The expansion into international markets, including partnerships with major automotive brands like Toyota, is expected to drive future growth [2]. - The smart actuator and robotics segments are anticipated to contribute significantly to revenue growth, with a focus on high-precision solutions for various applications [2].