SANHUA(SZ:002050) Huaan Securities·2024-10-31 04:00Investment Rating - Investment rating: Buy (maintained) [2] Core Views - The company reported Q3 2024 performance with revenue of 6.89 billion (up 6.8% YoY, down 4.8% QoQ) and net profit attributable to shareholders of 790 million (up 3.0% YoY, down 9.2% QoQ) [2] - The company is expected to benefit from the "old-for-new" policy, with both cooling and automotive parts businesses showing strong performance [2] - The company is in the process of preliminary discussions for issuing H shares, indicating confidence in its globalization strategy [2] Revenue Analysis - Cooling segment is expected to see double-digit growth YoY in Q3, with a seasonal decline QoQ but significant recovery in growth rate [2] - Automotive parts segment is expected to remain flat YoY, with some slowdown in orders from traditional car manufacturers in Europe [2] - Reference to Tesla's Q3 global production and delivery growth of 9.1% and 6.4% respectively, indicating recovery compared to Q2 [2] Profit Analysis - Q3 gross margin decreased by 2.6% YoY and increased by 0.3 percentage points QoQ; net profit margin decreased by 0.4% YoY and 0.5% QoQ [2] - The overall profitability remains stable despite challenges from raw material costs, shipping fees, and increased competition [2] Financial Forecast - Revenue projections for 2024, 2025, and 2026 are 27.4 billion, 31.5 billion, and 36.1 billion respectively, with YoY growth rates of 11%, 15%, and 15% [3] - Net profit attributable to shareholders is projected to be 3.2 billion, 3.7 billion, and 4.4 billion for the same years, with corresponding YoY growth rates of 10%, 15%, and 19% [3] - The company maintains a PE ratio of 26, 23, and 19 for the years 2024, 2025, and 2026 respectively [3]