Novoray(688300) Ping An Securities·2024-10-31 09:01Investment Rating - The investment rating for the company is "Recommended (Maintain)" [1][10]. Core Views - The company has shown a strong performance with a year-on-year revenue growth of 27.25% in Q3 2024, reaching 250 million yuan, and a net profit growth of 30.10%, amounting to 67 million yuan [5][10]. - The company is positioned as a leading domestic producer of electronic-grade silicon micro-powder, with a focus on high-barrier products such as Low-α spherical silicon micro-powder and spherical alumina powder [10]. - The company is expanding its production capacity with a 25,200-ton project for electronic-grade functional powder materials, expected to be completed in the second half of 2024, and a 3,000-ton advanced production line for ultra-fine spherical powder, projected to be operational by 2025 [6][10]. Financial Performance - In the first three quarters of 2024, the company achieved a total revenue of 694 million yuan, reflecting a year-on-year increase of 35.79%, and a net profit of 185 million yuan, up 48.10% year-on-year [5][10]. - The gross profit margin improved by 2.23 percentage points to 42.16% due to increased sales of high-end spherical products [6]. - The company has effectively managed costs, reducing the total expense ratio to 14.03% from 15.16% in the same period last year [7]. Future Projections - The company is expected to maintain a strong growth trajectory, with projected net profits of 256 million yuan, 333 million yuan, and 418 million yuan for 2024, 2025, and 2026 respectively [10]. - Revenue forecasts indicate a significant increase, with expected revenues of 962 million yuan in 2024, 1.247 billion yuan in 2025, and 1.542 billion yuan in 2026, reflecting year-on-year growth rates of 35.2% and 29.6% [8][14]. - The company aims to enhance its product offerings to meet the evolving demands of the semiconductor industry, focusing on lower dielectric loss and improved thermal conductivity [6][10].