KSHG(605333) 甬兴证券·2024-10-31 01:14Investment Rating - The report maintains a "Buy" rating for the company [7][4]. Core Views - The company's core customer demand is strong, driving significant revenue growth. In Q3 2024, major clients such as Seris and Li Auto showed positive production demand, with output increasing by 205% and 48% year-on-year, respectively [2][3]. - Scale effects are enhancing the company's profitability, with a gross margin of approximately 20.5% in Q3 2024, up 7.8 percentage points year-on-year, and a net margin of about 8.7%, up 6.8 percentage points year-on-year [2][3]. Summary by Sections Revenue and Profitability - In Q3 2024, the company achieved revenue of approximately 2.11 billion yuan, a year-on-year increase of 121.4% and a quarter-on-quarter increase of 12.1%. The net profit attributable to shareholders was about 183 million yuan, reflecting a year-on-year increase of 901.7% and a quarter-on-quarter increase of 18.9% [1][4]. Growth Drivers - The growth path is clear, driven by three factors: customer base, production capacity, and technology. The market share of domestic brands in China's passenger car sector reached 56%, up 6.1 percentage points year-on-year. The company is positioned to benefit from the rise of domestic automotive brands [3][4]. - Technological innovations such as integrated high-voltage connectors and aluminum replacing copper are expected to optimize the company's cost structure and enhance profitability [3]. Future Projections - The company’s revenue forecasts for 2024 to 2026 are approximately 7.69 billion, 10.72 billion, and 13.37 billion yuan, representing year-on-year growth rates of 92.1%, 39.4%, and 24.7%, respectively. The net profit forecasts for the same period are approximately 622 million, 937 million, and 1.204 billion yuan, with year-on-year growth rates of 1050.3%, 50.5%, and 28.6% [4][6].