JIULI Hi-tech(002318) Minsheng Securities·2024-10-31 14:47Investment Rating - The report maintains a "Recommended" rating for the company [3][5]. Core Views - The company's Q3 performance exceeded expectations, with high-end production capacity accelerating release [1]. - The gross profit margin has increased year-on-year, indicating improved profitability [2]. - The company is optimizing its product structure and expanding high-end production capacity, which is expected to enhance its main business profitability [3]. Financial Performance Summary - For Q1-Q3 2024, the company achieved revenue of 7.143 billion yuan, a year-on-year increase of 16.1%, while net profit attributable to shareholders decreased by 5.7% to 1.045 billion yuan [1]. - The gross profit margin for Q1-Q3 2024 was 26.93%, up 2.16 percentage points year-on-year, with Q3 gross profit margin at 31.15%, an increase of 3.46 percentage points year-on-year [2]. - Investment income for Q1-Q3 2024 was 0.37 billion yuan, down 4.75 billion yuan year-on-year [2]. Production Capacity and Orders - The company has a significant scale advantage and is one of the few domestic enterprises capable of using advanced extrusion technology for production [3]. - As of H1 2024, several high-end production projects are nearing completion, which will support ongoing capacity expansion [3]. - The company's subsidiary, EBK, secured a large order from the Abu Dhabi National Oil Company, valued at approximately 5.92 billion euros (about 4.6 billion yuan) [3]. Profit Forecast - The company is expected to achieve net profits attributable to shareholders of 1.422 billion yuan, 1.711 billion yuan, and 1.981 billion yuan for 2024, 2025, and 2026, respectively [3][4]. - Corresponding PE ratios are projected to be 16, 13, and 11 times based on the closing price on October 31 [3].