GONGNIU(SH:603195)2024-10-31 10:20Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported a revenue of 12.6 billion yuan for the first nine months of 2024, representing an 8.6% year-on-year increase, and a net profit of 3.26 billion yuan, up 16.0% year-on-year. In Q3 2024, revenue reached 4.217 billion yuan, a 5.0% increase year-on-year, with a net profit of 1.02 billion yuan, up 3.3% year-on-year [1]. - The electrical connection business shows steady growth, with the company focusing on product innovation to meet diverse customer needs and enhance revenue streams. Marketing strategies have been optimized through social media platforms to boost consumer conversion [1]. - The company is building a high-end product ecosystem in the smart electrical lighting sector, maintaining resilience despite market pressures. The brand "Muguang" continues to grow rapidly from a low base, indicating significant future growth potential [1]. - The renewable energy business is expanding its product lines, focusing on comprehensive scene-based development. The company anticipates continued high growth in Q3, driven by positive market feedback on new products [1][2]. Financial Summary - For the first nine months of 2024, the company achieved a gross margin of 43.1%, a 1.2 percentage point increase year-on-year. The net profit margin stood at 25.9%, up 1.7 percentage points year-on-year [2]. - The projected earnings per share (EPS) for 2024-2026 are 3.43 yuan, 3.67 yuan, and 4.10 yuan, respectively. The closing price on October 30 was 74.02 yuan, corresponding to price-to-earnings (PE) ratios of 22, 20, and 18 times for the respective years [2][3].