Neway CNC(688697) 西南证券·2024-11-01 02:31Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 16.91 CNY and a projected PE ratio of 17, 14, and 12 for the years 2024, 2025, and 2026 respectively [1][2]. Core Insights - The company reported a revenue of 1.834 billion CNY for the first three quarters of 2024, reflecting a year-on-year growth of 5.45%. However, the net profit attributable to the parent company was 228 million CNY, showing a decline of 3.53% year-on-year. In Q3 2024, revenue reached 672 million CNY, up 6.37% year-on-year and 9.42% quarter-on-quarter, while net profit was 83 million CNY, down 1.12% year-on-year but up 10.18% quarter-on-quarter [2][3]. - Despite a weak demand in the machine tool industry, the company managed to achieve revenue growth, indicating a strong market position. The slight decline in profit was attributed to a minor decrease in gross margin [2][3]. Financial Performance - The company’s gross margin for Q1-Q3 2024 was 25.47%, down 1.01 percentage points year-on-year, while the net profit margin was 12.41%, down 1.16 percentage points year-on-year. In Q3 2024, the gross margin was 25.73%, down 1.46 percentage points year-on-year but up 0.98 percentage points quarter-on-quarter, with a net profit margin of 12.33%, down 0.93 percentage points year-on-year but up 0.08 percentage points quarter-on-quarter [3][4]. - The company’s operating income is projected to grow from 2.321 billion CNY in 2024 to 3.368 billion CNY in 2026, with a compound annual growth rate (CAGR) of 13%. The net profit attributable to the parent company is expected to increase from 317.65 million CNY in 2024 to 454.28 million CNY in 2026, with a CAGR of 17% [4][6]. Market Context - The machine tool industry is experiencing weak demand, with a reported 3.5% decline in revenue for key enterprises from January to August 2024. However, the company’s performance contrasts with the industry trend, showcasing its resilience and competitive advantage [2][3].