LEAD INTELLIGENT(300450) 东吴证券·2024-10-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a narrowing of impairment losses in Q3, with profits turning positive. For the first three quarters of 2024, the company achieved revenue of 9.112 billion yuan, down 30.90% year-on-year, and a net profit attributable to shareholders of 608 million yuan, down 73.81% year-on-year. In Q3 alone, revenue was 3.359 billion yuan, down 44.93% year-on-year but up 37.61% quarter-on-quarter, with a net profit of 149 million yuan, down 86.71% year-on-year but turning positive quarter-on-quarter [1] - The company's profitability improved quarter-on-quarter, with significant potential for further enhancement. The gross margin for the first three quarters of 2024 was 36.42%, down 1.61 percentage points year-on-year, while the net profit margin was 6.44%, down 11.14 percentage points year-on-year. In Q3, the gross margin was 36.63%, up 1 percentage point year-on-year and quarter-on-quarter, indicating improved profitability [1] - The company has a sufficient backlog of orders, with contract liabilities growing 15.14% year-on-year to 11.405 billion yuan as of Q3 2024. The net cash flow from operating activities was -797 million yuan, with a narrowing negative cash flow [1] - The company is accelerating overseas lithium battery production, with a focus on rational expansion compared to domestic competitors. The company secured a 20GWh lithium battery equipment order in the U.S. and expects the proportion of overseas orders to increase from 30% in 2023 to 50% in 2024 [1] - The company is expanding into photovoltaic and hydrogen energy sectors, achieving significant breakthroughs in technology and securing over 2 billion yuan in equipment orders in the photovoltaic field [1] Financial Forecasts - The company is projected to achieve net profits of 1.3 billion yuan, 2 billion yuan, and 2.6 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 22, 15, and 11 times based on current stock prices. The report maintains a "Buy" rating considering the valuation levels and growth potential [1]