YINLUN(SZ:002126) Guoxin Securities·2024-10-31 06:40Investment Rating - The investment rating for the company is "Outperform the Market" [3][20]. Core Views - The company has shown significant growth in its electric vehicle (EV) business, with a 27.3% year-on-year increase in net profit for Q3 2024, despite a 4.0% quarter-on-quarter decline in revenue [1][4]. - The company's gross profit margin for Q3 2024 is reported at 17.7%, with a net profit margin of 7.8%, indicating continuous improvement in profitability [1][8]. - The company is expanding its overseas operations, with its Mexico plant achieving breakeven in Q4 2023 and the Poland plant beginning production in October 2023 [1][13]. - The digital and energy business segment is emerging as a third growth curve, with a 23.5% year-on-year revenue increase in H1 2024 [14][15]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 3.05 billion yuan, a year-on-year increase of 11.9% and a quarter-on-quarter decrease of 4.0%. The net profit attributable to shareholders was 200 million yuan, up 27.3% year-on-year but down 4.8% quarter-on-quarter [1][4]. - The company's revenue projections for 2024, 2025, and 2026 are 13.505 billion yuan, 16.007 billion yuan, and 18.889 billion yuan, respectively, with net profits of 862 million yuan, 1.111 billion yuan, and 1.371 billion yuan [20][21]. Business Segments - The passenger vehicle segment has benefited from the growth of the EV market, with sales of EV thermal management products increasing significantly from 2.89 million yuan in 2021 to 35.84 million yuan in 2023 [5][12]. - The commercial vehicle segment faced challenges due to rising natural gas prices and weak demand, with sales dropping 14.9% year-on-year in Q3 2024 [1][4]. International Expansion - The company has established production bases in Mexico and Poland, with the Mexico plant focusing on thermal management products for North American customers and the Poland plant supporting European clients [1][13]. - The company has a robust order backlog, with new orders expected to contribute approximately 4.143 billion yuan in annual sales once fully realized [15][20]. Digital and Energy Business - The digital and energy segment includes products for data center liquid cooling and energy storage systems, achieving revenue of 4.35 billion yuan in H1 2024, marking a 23.5% increase year-on-year [14][15]. - The company has secured strategic partnerships with major clients such as BYD and Alibaba in this segment [16].