FIRST TRACTOR(SH:601038) Southwest Securities·2024-10-31 06:38Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported steady revenue in Q3 2024, but a decline in gross margin negatively impacted net profit [2] - For the first three quarters of 2024, the company achieved operating revenue of 10.736 billion yuan, a year-on-year increase of 4.78%, and a net profit attributable to shareholders of 1.101 billion yuan, a year-on-year increase of 1.45% [1][2] - In Q3 2024, the company recorded operating revenue of 2.930 billion yuan, a year-on-year decrease of 2.45% and a quarter-on-quarter decrease of 7.01%, with a net profit of 196 million yuan, down 40.93% year-on-year and 36.08% quarter-on-quarter [1][2] Summary by Sections Revenue and Profitability - The company’s comprehensive gross margin for the first three quarters of 2024 was 16.37%, a decrease of 0.20 percentage points year-on-year, while the net profit margin was 10.39%, down 0.27 percentage points year-on-year [2] - In Q3 2024, the comprehensive gross margin was 14.65%, a decline of 3.64 percentage points year-on-year and 1.91 percentage points quarter-on-quarter, with a net profit margin of 6.68%, down 4.24 percentage points year-on-year and 3.25 percentage points quarter-on-quarter [2] Cost Management - The company demonstrated excellent cost control in Q3 2024, with a period expense ratio of 7.96%, down 0.38 percentage points year-on-year [3] - The sales expense ratio was 1.70%, down 0.26 percentage points year-on-year, while the management expense ratio was 2.71%, down 0.41 percentage points year-on-year [3] Future Outlook - The company is expected to achieve net profits of 1.068 billion, 1.274 billion, and 1.489 billion yuan for 2024, 2025, and 2026 respectively, corresponding to EPS of 0.95, 1.13, and 1.33 yuan, indicating a compound annual growth rate of 14% in net profit over the next three years [3]