NJEC(600699) 海通证券·2024-10-31 04:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company has shown stable revenue with significant improvement in profitability, achieving a net profit of 942 million yuan in the first three quarters of 2024, a year-on-year increase of 20.90% [6][8] - The gross margin has improved to 15.59%, up by 1.65 percentage points year-on-year, indicating enhanced profitability [6][7] - The company secured new orders totaling approximately 70.4 billion yuan in the first three quarters of 2024, with a notable focus on new energy vehicle-related orders [7] Summary by Sections Financial Performance - In the first three quarters of 2024, the company reported revenue of 41.135 billion yuan, a slight decrease of 0.42% year-on-year, while the automotive safety segment generated approximately 28.4 billion yuan and the automotive electronics segment about 12.7 billion yuan [6] - For Q3 2024, revenue was 14.056 billion yuan, down 1.68% year-on-year but up 1.85% quarter-on-quarter, with a net profit of 305 million yuan [6] Profitability Metrics - The gross margin for Q3 2024 was 15.74%, reflecting a year-on-year increase of 0.81 percentage points, while the net profit margin was 2.17% [6] - The company expects net profits for 2024-2026 to be 1.319 billion, 1.669 billion, and 2.067 billion yuan respectively, with EPS projected at 0.94, 1.18, and 1.47 yuan [8][12] Order and Business Development - The company has seen a steady increase in gross margin, particularly in the automotive safety business, which improved by 2.6 percentage points to approximately 14.0% [7] - New orders in the automotive safety segment amounted to about 49.1 billion yuan, while the automotive electronics segment secured around 21.4 billion yuan [7] Valuation and Market Comparison - The company is valued with a PE ratio of 14 for 2025, with a reasonable price range estimated between 18.88 and 23.6 yuan [8][11] - Compared to peers, the company’s EPS for 2024E is projected at 0.94 yuan, with a PE ratio of 18 [11]