VEICHI(SH:688698) Huafu Securities·2024-10-31 07:47Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.55 CNY, based on a projected PE of 25 times for 2025 [4][14]. Core Views - The company achieved revenue of 1.16 billion CNY in the first three quarters, representing a year-on-year increase of 22.37%, and a net profit of 210 million CNY, up 34.09% year-on-year [1]. - The gross margin for Q3 reached 42.63%, the highest in history, with a year-on-year increase of 5.52 percentage points [2]. - The company has established a robotics division and is positioned at both ends of the robotics market, with plans for joint ventures and collaborations to enhance manufacturing capabilities [3]. Financial Performance - Revenue for Q3 was 390 million CNY, a year-on-year increase of 20.25%, with a net profit of 80 million CNY, up 51.88% year-on-year [1]. - The gross margin for the first three quarters was 40.53%, an increase of 2.57 percentage points year-on-year, driven by increased overseas sales and manufacturing optimization [2]. - The company’s revenue projections for 2024-2026 are 1.64 billion CNY, 2.00 billion CNY, and 2.46 billion CNY, respectively, with net profits of 270 million CNY, 330 million CNY, and 400 million CNY [4][12]. Product Segmentation - Revenue from general frequency converters, industry-specific machines, and servo and control systems for Q1-Q3 was 300 million CNY, 450 million CNY, and 370 million CNY, with year-on-year changes of -3%, +52%, and +22% respectively [1]. - In Q3, the revenue breakdown was 100 million CNY for general frequency converters, 150 million CNY for industry-specific machines, and 110 million CNY for servo and control systems, with year-on-year changes of +7%, +41%, and +12% respectively [1]. Research and Development - The company invested 140 million CNY in R&D in the first three quarters, a year-on-year increase of 36.2%, which has contributed to cost leadership and product design optimization [2].