Yongjin Technology (SH:603995) Minsheng Securities·2024-10-31 06:37Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company achieved a revenue of 30.941 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 12.2%. The net profit attributable to shareholders was 584 million yuan, up 85.1% year-on-year [2] - The report highlights a decline in sales volume in Q3, but an improvement in gross margin year-on-year [3] - The company is focusing on diversified development and the continuous advancement of new production capacity, with several projects under construction to support sales growth [4] Summary by Sections Financial Performance - For Q1-Q3 2024, the company reported a revenue of 30.941 billion yuan, a year-on-year increase of 12.2%. The net profit attributable to shareholders was 584 million yuan, up 85.1% year-on-year, while the net profit excluding non-recurring items was 461 million yuan, an increase of 59.3% year-on-year [2] - In Q3 2024, the company achieved a revenue of 10.644 billion yuan, a year-on-year increase of 3.9% but a quarter-on-quarter decrease of 3.2%. The net profit attributable to shareholders was 156 million yuan, up 53.1% year-on-year but down 48.9% quarter-on-quarter [2] Sales and Margins - The sales volume of 300 series stainless steel coils for Q1-Q3 2024 was 1.92 million tons, a year-on-year increase of 13.86%. The sales volume for Q3 was 640,000 tons, a year-on-year decline of 4.95% and a quarter-on-quarter decline of 7.25% [3] - The gross margin for Q1-Q3 was 5.74%, an increase of 1.04 percentage points year-on-year. The gross margin for Q3 was 5.61%, an increase of 0.99 percentage points year-on-year but a decrease of 1.06 percentage points quarter-on-quarter [3] Future Outlook - The company is implementing multiple projects, including a technical transformation project in Guangdong with an annual processing capacity of 350,000 tons and a project in Zhejiang with an annual capacity of 195,000 tons, which are expected to enhance overall profitability [4] - The company completed a private placement raising 1.2 billion yuan to support expansion projects, including a 220,000-ton cold-rolled stainless steel project in Gansu and a 350,000-ton project in Guangdong [4] - The company is also diversifying into titanium alloy and battery casing materials, with ongoing projects showing significant progress [4] - The projected net profits for 2024, 2025, and 2026 are 743 million yuan, 819 million yuan, and 906 million yuan respectively, with corresponding PE ratios of 9, 8, and 8 times [4]