WEIXING(SZ:002003) Tianfeng Securities·2024-10-30 11:46Investment Rating - The report maintains a "Buy" rating for the company with an expected relative return of over 20% within the next six months [7][15]. Core Views - The company's Q3 2024 revenue reached 1.3 billion, a year-on-year increase of 19%, while the net profit attributable to the parent company was 210 million, a decrease of 10%. However, the adjusted net profit after excluding non-recurring items increased by 3% [1]. - The company has shown strong growth in the first three quarters of 2024, with total revenue of 3.6 billion, up 23% year-on-year, and a net profit of 620 million, up 17% [1]. - The increase in sales expenses by 35.31% is attributed to a change in the bonus accrual method, which now accounts for performance on a quarterly basis rather than a lump sum in Q4 [1][5]. Financial Performance Summary - The company's gross margin for the first three quarters of 2024 was 42.7%, an increase of 1.1 percentage points, while the net margin was 17.6%, a decrease of 0.8 percentage points [5]. - The company expects EPS for 2024, 2025, and 2026 to be 0.6, 0.7, and 0.8 respectively, with corresponding P/E ratios of 23X, 20X, and 16X [4]. - The projected revenue growth rates for 2024, 2025, and 2026 are 22.23%, 19.55%, and 20.20% respectively [6][11]. Strategic Focus - The company is focusing on enhancing its international marketing capabilities, particularly through the launch of its industrial park in Vietnam, to expand its global presence [2]. - There is an emphasis on product development and customer engagement, including tailored services for key clients and the introduction of new products based on market trends [3].