IKD(600933) Tianfeng Securities·2024-10-31 03:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price reflecting a potential upside of over 20% within the next six months [6][14]. Core Insights - The company reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 24.13% in the first three quarters of 2024, reaching 742 million yuan [1]. - Revenue for the first three quarters of 2024 was 4.974 billion yuan, representing a year-on-year increase of 17.46% [1]. - The company has initiated a stock incentive plan to enhance employee motivation, covering 857 individuals, including directors and key personnel [4]. Financial Performance Summary - For Q3 2024, the company achieved revenue of 1.725 billion yuan, up 8.40% year-on-year and 7.33% quarter-on-quarter [1]. - The gross profit margin for Q3 2024 was 29.75%, an increase of 0.96 percentage points year-on-year [1]. - The net profit margin for Q3 2024 was 17.34%, reflecting a year-on-year increase of 4.57 percentage points [1]. - The company’s operating expenses (excluding R&D) decreased to 6.13% of revenue, down 1.83 percentage points year-on-year [2]. Global Expansion and Production Layout - The company is expanding its global production footprint with new facilities in North America, Southeast Asia, and Europe [3]. - A new factory in Mexico is set to begin production in Q2 2025, enhancing competitiveness in the North American market [3]. - The Malaysian production base has commenced aluminum alloy production and is preparing for zinc alloy component production by Q4 2024 [3]. - A wholly-owned subsidiary has been established in Hungary, with production planning underway based on customer demand [3]. Earnings Forecast and Valuation - The company’s net profit forecasts for 2024, 2025, and 2026 have been adjusted to 1.021 billion yuan, 1.257 billion yuan, and 1.403 billion yuan, respectively [4]. - The current market capitalization corresponds to a P/E ratio of 15, 12, and 11 times for 2024, 2025, and 2026 [4]. - The projected revenue growth rates for the next few years are 17% for 2024, 17% for 2025, and 16% for 2026 [10].