Lens(SZ:300433)2024-10-31 01:16Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [5][8]. Core Insights - The company reported a revenue of 46.228 billion yuan for Q3 2024, representing a year-over-year increase of 36.74%, with a net profit of 2.371 billion yuan, up 43.74% year-over-year [5]. - The third quarter's gross margin improved to 21.4%, an increase of 1 percentage point compared to the previous year, contributing to better-than-expected profit results [5][6]. - The company has a strong market position in the global smart device protective and structural components sector, with significant investments in technology and human resources [6][7]. Financial Summary - For the first half of 2024, revenue from smartphones and computers reached 24 billion yuan, a year-over-year increase of 48.87%, with a gross margin of 13.75% [6]. - The company’s total revenue is projected to grow from 54.491 billion yuan in 2023 to 65.633 billion yuan in 2024, reflecting a growth rate of 20.4% [9]. - The net profit forecast for 2024 has been revised upwards to 3.887 billion yuan, with a year-over-year growth rate of 28.6% [8][9]. Market Position and Strategy - The company has been enhancing its ODM and OEM business models, expanding into smart terminal assembly, and has established partnerships with major clients like Xiaomi [7]. - The company has invested heavily in R&D, with cumulative expenditures reaching 15.2 billion yuan since its IPO in 2015, and holds the highest number of patents in the industry [6][7]. - The company’s workforce has increased to 133,700 employees, with labor costs accounting for 24% of operating costs, indicating a labor-intensive operational model [6]. Profitability and Valuation - The report projects earnings per share to increase from 0.61 yuan in 2023 to 0.78 yuan in 2024, with a price-to-earnings ratio of 29 for 2024 [8][9]. - The company’s return on equity (ROE) is expected to improve from 5.0% in 2024 to 10.3% by 2026, indicating enhanced profitability [8].