CCTC(SZ:300408) KAIYUAN SECURITIES·2024-10-31 06:40Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3]. Core Views - The company reported a significant year-on-year increase in performance for Q3 2024, with revenue reaching 5.78 billion yuan, up 40.59% year-on-year, and a net profit of 1.78 billion yuan, up 40.59% year-on-year [3]. - The growth in profit is attributed to the recovery in downstream industry demand and increasing market recognition of the company's products [3]. - The company is expected to continue benefiting from the high-end trend in MLCC (Multi-Layer Ceramic Capacitor) products, with ongoing improvements in profitability and product offerings [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 5.381 billion yuan, a year-on-year increase of 31.05%, and a net profit of 1.603 billion yuan, up 40.38% year-on-year [3]. - The sales gross margin for Q3 2024 was 44.30%, an increase of 4.42 percentage points year-on-year, while the net profit margin was 29.55%, up 1.68 percentage points year-on-year [3]. - The company has adjusted its profit forecast for 2024-2026, expecting net profits of 2.111 billion yuan, 2.694 billion yuan, and 3.285 billion yuan respectively [3]. Product Development and R&D - The company is expanding its MLCC product line, focusing on innovation and cost reduction through new materials and technologies [4]. - R&D expenses for Q1-Q3 2024 amounted to 401 million yuan, a year-on-year increase of 4.15%, with an R&D expense ratio of 7.46% [5]. - The establishment of research centers in Chengdu and Suzhou is aimed at enhancing R&D capabilities and talent acquisition [5].