GenTech(SH:688596) SINOLINK SECURITIES·2024-10-31 03:44Investment 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 significantly, indicating a shift in product and order structure [4]. Summary by Sections Revenue and Profit Performance - For the first three quarters of 2024, the company achieved a total revenue of 3.501 billion RMB, with a net profit of 332 million RMB, marking significant growth compared to the previous year [3]. - The third quarter alone saw a revenue of 1.649 billion RMB and a net profit of 227 million RMB, showcasing strong quarterly performance [3]. Business Operations - The company has a sufficient order backlog, with non-equipment business contracts increasing by 83% year-on-year, indicating a rapid growth in this segment [4]. - The operating cash flow for Q3 2024 was 240 million RMB, a 107% increase year-on-year, demonstrating improved cash collection efficiency [4]. Capital Expansion and Share Buyback - The company plans to issue convertible bonds to raise up to 1.102 billion RMB for expanding electronic materials production and developing biopharmaceutical equipment [5]. - A share buyback of 1,615,286 shares was completed, representing 0.56% of the total share capital, reflecting the company's confidence in long-term growth [5]. Profit Forecast and Valuation - The company is expected 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 year-on-year growth rates of 29%, 44%, and 44% [6]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.83 RMB, 2.63 RMB, and 3.80 RMB, with price-to-earnings (P/E) ratios of 19, 13, and 9 times, respectively [6].