Secote co.ltd(603283) 东吴证券·2024-10-31 16:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 3.194 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 21.76%. The net profit attributable to the parent company was 475 million yuan, up 18.99% year-on-year [2] - In Q3 alone, the revenue was 1.563 billion yuan, showing a year-on-year growth of 28.15% and a quarter-on-quarter increase of 82.32%. The net profit for Q3 was 321 million yuan, reflecting a year-on-year increase of 8.53% and a significant quarter-on-quarter rise of 438% [2] - The company has a strong order backlog, with profit forecasts for 2024-2026 set at 840 million, 970 million, and 1.07 billion yuan respectively, corresponding to dynamic P/E ratios of 17, 15, and 14 times [5] Summary by Sections Financial Performance - The company reported a gross margin of 44.69% for the first three quarters of 2024, a slight decrease of 0.12 percentage points year-on-year. The net profit margin was 15.22%, up 0.01 percentage points year-on-year [3] - In Q3, the gross margin was 44.38%, down 5.53 percentage points year-on-year, while the net profit margin was 20.71%, down 3.31 percentage points year-on-year but up 13.50 percentage points quarter-on-quarter due to a significant reduction in the expense ratio [3] Cash Flow and Working Capital - As of the end of Q3 2024, the company's inventory was 1.457 billion yuan, down 8.78% year-on-year, and contract liabilities were 510 million yuan, down 65.31% year-on-year. However, accounts receivable increased by 117% year-on-year to 2.062 billion yuan [4] - The net cash flow from operating activities for Q3 was -256 million yuan, indicating pressure on sales collections, but Q4 is expected to see an acceleration in sales receipts [4] Market Position and Growth Potential - The company is a leader in consumer electronics equipment and is expanding into semiconductor and new energy sectors. The demand for equipment related to periscope cameras and smart glasses is expected to drive growth [5] - The acquisition of Japanese Optima has allowed the company to enter the semiconductor measurement equipment market, enhancing its competitiveness and benefiting from the domestic substitution trend [5]