Huaguang Welding(SH:688379) Minsheng Securities·2024-10-31 00:32Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company reported a revenue of 1.371 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 30.45%. The net profit attributable to shareholders reached 79 million yuan, up 110.48% year-on-year [2]. - The company's profitability continues to improve, with a gross margin of 15.08% for the first three quarters of 2024, an increase of 1.70 percentage points year-on-year. The net profit margin was 5.73%, up 2.18 percentage points year-on-year [2]. - Revenue growth is driven by the active development of new products and expansion into overseas markets, particularly in the electronic and new energy vehicle sectors [2]. - The company has seen significant improvements in profitability due to scale effects and management optimization, with new production lines contributing to enhanced efficiency and quality [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 504 million yuan, a year-on-year increase of 44.56%. The net profit attributable to shareholders was 34 million yuan, up 571.46% year-on-year [2]. - The company’s gross margin for Q3 2024 was 15.16%, an increase of 2.48 percentage points year-on-year, while the net profit margin reached 6.69%, up 5.25 percentage points year-on-year [2]. Revenue and Profit Forecast - The company is expected to achieve revenues of 1.820 billion, 2.251 billion, and 2.758 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 28.6%, 23.7%, and 22.5% [3]. - The forecasted net profit attributable to shareholders for the same years is 108 million, 130 million, and 151 million yuan, with growth rates of 159.7%, 20.7%, and 15.4% [3]. Valuation Metrics - The projected PE ratios for 2024, 2025, and 2026 are 19, 16, and 14, respectively, indicating a favorable valuation outlook as the company continues to grow [3].