JIULI Hi-tech(002318) Guotou Securities·2024-10-31 02:50Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 6-month target price of 30.80 CNY [5][6]. Core Insights - The company achieved a revenue of 7.143 billion CNY in the first three quarters of 2024, representing a year-on-year increase of 16.07%. The gross margin was 26.93%, and the net profit attributable to shareholders was 1.045 billion CNY, down 5.68% year-on-year, with a net profit margin of 14.63% [2][3]. - The company's operating profit grew significantly, with a 52.34% year-on-year increase in net profit attributable to shareholders after excluding investment income from Yongxing Materials, reaching 975 million CNY [3]. - The alloy subsidiary performed exceptionally well, generating 1.006 billion CNY in revenue and 100 million CNY in net profit in the first three quarters of 2024, surpassing the entire performance of 2023 [4]. Financial Performance Summary - For 2024, the company is projected to achieve revenues of 10.282 billion CNY, 11.906 billion CNY, and 13.728 billion CNY for 2024, 2025, and 2026 respectively, with growth rates of 20.0%, 15.8%, and 15.3% [5][9]. - The net profit is expected to be 1.509 billion CNY, 1.787 billion CNY, and 2.028 billion CNY for the same years, with growth rates of 1.4%, 18.4%, and 13.4% respectively [5][9]. - The company’s price-to-earnings (PE) ratio is projected to be 20 times for 2024, compared to a PE of 13 times for comparable companies in the steel sector [5][10]. Market Position and Strategy - The company has a strong position in the high-end product market, with approximately 22% of its revenue coming from high-end equipment manufacturing and new materials, which grew by 40% year-on-year [3]. - The alloy company's continuous innovation in materials and technology is expected to drive stable benefits for the company in the future [4].