SINYUAN ZM(301398) 西南证券·2024-10-31 06:55Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [1]. Core Views - The company reported a revenue of 290 million yuan for the first three quarters of 2024, a year-on-year increase of 13.5%, while the net profit attributable to shareholders decreased by 3.7% to 56.08 million yuan [1]. - In Q3 2024, the company achieved a revenue of 100 million yuan, representing a year-on-year growth of 26.9%, marking a new high for a single quarter [1]. - The company is focusing on magnesium alloy automotive die-casting business, which is expected to drive future growth [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a comprehensive gross margin of 33.7%, down 3.3 percentage points year-on-year, with Q3 gross margin at 33.3%, up 1.0 percentage point quarter-on-quarter [1]. - The net profit margin for Q3 2024 was 18.3%, down 5.2 percentage points year-on-year, primarily due to increased expense ratios [1]. - R&D expense ratio remained stable at 5.2% for both the first three quarters and Q3 alone [1]. Capacity Expansion and Market Development - The company plans to issue convertible bonds to raise 450 million yuan for the construction of a new factory in Ningbo, aiming to produce 3 million sets of high-strength magnesium alloy precision forming parts annually [1]. - The company received a supplier designation notice from an automotive parts manufacturer to develop and supply magnesium alloy reducer housing products, expected to start mass production in June 2025, with a total contract value of approximately 170 million yuan [1]. Earnings Forecast and Investment Suggestions - Revenue projections for 2024-2026 are 480 million yuan, 700 million yuan, and 990 million yuan, respectively, with net profits of 110 million yuan, 140 million yuan, and 190 million yuan [1]. - Corresponding EPS for these years are expected to be 1.32 yuan, 1.80 yuan, and 2.43 yuan, with PE ratios of 34x, 25x, and 19x [1]. - The report maintains a "Buy" rating based on the anticipated rapid growth in the company's performance [1].