NovelBeam Technology(SH:688677) Tai Ping Yang·2024-10-31 06:39Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [12]. Core Views - The company's performance is expected to recover in the short term despite a decline in revenue due to customer order cycles, particularly from a major U.S. client [4][8]. - The company has made progress in its overseas business, with new product launches and certifications enhancing its market position [4][5]. - The gross profit margin has improved, reflecting a favorable product mix with higher-margin products contributing more significantly to revenue [6][7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 319 million, a year-on-year decrease of 15.30%, and a net profit of 97 million, down 17.60% [3][4]. - In Q3 2024, revenue was 98 million, a decline of 9.39% year-on-year, while net profit was 27 million, down 7.00% [3][4]. Business Development - The decline in revenue is primarily attributed to the U.S. client's inventory reduction, but sales are expected to rebound as inventory levels decrease [4]. - The company has successfully launched a 4mm hysteroscope and is in the trial production phase for a 2.9mm cystoscope, indicating ongoing product development [4][5]. Profitability Metrics - The overall gross margin increased by 1.64 percentage points to 65.74% year-on-year, with Q3 gross margin at 69.44%, reflecting a significant improvement [6][7]. - The net profit margin for Q3 was 27.11%, a decrease of 0.52 percentage points year-on-year, influenced by changes in expense ratios [7]. Future Projections - Revenue forecasts for 2024-2026 are 437 million, 548 million, and 679 million respectively, with expected growth rates of -7%, 25%, and 24% [8][9]. - Projected net profits for the same period are 137 million, 187 million, and 246 million, with growth rates of -6%, 36%, and 31% [8][9].