CNGR(SZ:300919) Soochow Securities·2024-10-30 23:30Investment Rating - The report maintains a "Buy" rating for Zhongwei Co., Ltd. (300919) [1] Core Views - The company's performance in Q1-Q3 2024 met expectations, with revenue of 30.2 billion yuan, a year-on-year increase of 15%, and a net profit attributable to shareholders of 1.32 billion yuan, a year-on-year decrease of 4.5% [2] - In Q3, the revenue was 10.1 billion yuan, showing a year-on-year increase of 13% but a quarter-on-quarter decrease of 7%. The net profit attributable to shareholders was 460 million yuan, with a quarter-on-quarter decrease of 26% [2] - The report highlights stable profitability in precursor products, with a slight decrease in shipments but stable profit per ton. Iron phosphate shipments saw significant growth [2][3] - Nickel product profits declined due to falling nickel prices and foreign exchange losses, with Q3 nickel average price dropping to 16,500 USD/ton [3] - The report notes a significant decrease in minority shareholder losses and a substantial improvement in operating cash flow [3] Financial Forecasts and Valuation - The report revises down the profit forecasts for 2024-2026, expecting net profits attributable to shareholders of 1.81 billion, 2.31 billion, and 2.81 billion yuan respectively, reflecting a year-on-year decrease of 7% in 2024 [4] - The corresponding P/E ratios are projected at 20x, 16x, and 13x for 2024, 2025, and 2026 respectively, considering the company is the largest precursor manufacturer in China [4]