JCT(603657) Tianfeng Securities·2024-10-30 12:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 12.2 CNY per share [5]. Core Insights - The company achieved a revenue of 1.486 billion CNY in the first three quarters of 2024, representing a year-on-year increase of 9.94%, while the net profit attributable to the parent company was 0.05 billion CNY, down 88.15% year-on-year [1]. - The company is expected to see rapid growth in export orders, supported by increased overseas production capacity and a robust order book for both components and complete machines [2]. - The competitive landscape and currency exchange rate fluctuations have negatively impacted the company's profit margins, with a gross margin of 11.64% and a net margin of 0.32% for the first three quarters of 2024 [3]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 590 million CNY, a year-on-year increase of 28.38%, but the net profit attributable to the parent company was only 0.01 billion CNY, down 88.74% year-on-year [1]. - The gross margin for the first three quarters of 2024 was 11.64%, a decrease of 0.95 percentage points year-on-year, while the net margin was 0.32%, down 2.98 percentage points year-on-year [3]. Revenue and Cost Structure - The company plans to invest 135 million CNY in expanding its clean appliance production base in Vietnam, increasing the planned area from approximately 56,000 square meters to about 133,400 square meters to enhance operational efficiency and supply chain integration [2]. - The sales, management, R&D, and financial expense ratios for the first three quarters of 2024 were 0.94%, 5.65%, 3.3%, and 0.01%, respectively, showing a mixed trend compared to the previous year [3]. Future Outlook - The report suggests that as the company increases its self-manufacturing rate and expands its overseas order scale, both revenue and profit levels are expected to improve [4]. - The forecast for net profit attributable to the parent company for 2024-2026 is adjusted to 0.142 billion CNY, 0.354 billion CNY, and 0.688 billion CNY, respectively, with corresponding dynamic P/E ratios of 117.2x, 47.0x, and 24.2x [4].