GenTech(SH:688596) SINOLINK SECURITIES·2024-10-31 02:50Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company reported a revenue of 3.501 billion RMB in Q3 2024, representing a year-on-year increase of 45.23%. The net profit attributable to shareholders was 332 million RMB, up 22.58% year-on-year [3]. - In Q3 2024, the company achieved a single-quarter revenue of 1.649 billion RMB, a 54.63% increase year-on-year, with a net profit of 227 million RMB, reflecting an 87.72% year-on-year growth [3]. - The company has a robust order backlog, with non-equipment orders increasing by 83% year-on-year, indicating a significant shift in product and order structure [4]. - The issuance of convertible bonds aims to raise up to 1.102 billion RMB for expanding electronic materials production and developing biopharmaceutical core equipment [5]. - The company completed a share buyback of 1,615,286 shares, representing 0.56% of total shares, demonstrating confidence in long-term growth [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 3.501 billion RMB, with a net profit of 332 million RMB, marking significant growth compared to the previous year [3]. - The company expects to achieve net profits of 519 million RMB, 746 million RMB, and 1.077 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding growth rates of 29%, 44%, and 44% [6]. Operational Analysis - The company has optimized its sales layout in domestic and international markets, with non-equipment business development accelerating, now accounting for over 38% of new contracts [4]. - The operating cash flow for Q3 2024 was 240 million RMB, a 107% increase year-on-year, indicating improved collection efficiency [4]. Valuation Metrics - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.83 RMB, 2.63 RMB, and 3.80 RMB, respectively, with price-to-earnings (P/E) ratios of 19, 13, and 9 [6].