Wuxi Zhenhua(SH:605319) Guotai Junan Securities·2024-11-01 04:42Investment Rating - The report maintains an "Accumulate" rating for the company [3] - The target price is set at 28.25 CNY, unchanged from the previous forecast [3][9] Core Insights - The company's Q3 2024 performance met expectations, with revenue of 610 million CNY, a year-on-year decrease of 5.3% and a quarter-on-quarter decrease of 2.3%, primarily due to falling raw material prices [4][9] - The net profit attributable to shareholders for Q3 2024 was 92 million CNY, slightly exceeding the upper limit of the earnings forecast, with a year-on-year increase of 21.0% and a quarter-on-quarter increase of 13.7% [9] - The company is expected to continue benefiting from scale effects and improved raw material costs, leading to sustained growth in future performance [4][9] Financial Summary - The company forecasts EPS of 1.49 CNY, 1.84 CNY, and 2.21 CNY for 2024, 2025, and 2026 respectively [9] - The projected revenue for 2024 is 2.943 billion CNY, reflecting a growth rate of 27.0% compared to 2023 [12] - The net profit for 2024 is estimated at 372 million CNY, with a year-on-year growth of 34.3% [12] Investment Highlights - The company announced a stock incentive plan with optimistic targets, which is expected to boost market confidence [9] - The issuance of convertible bonds aims to enhance customer stickiness in the high-growth new energy sector, with a total fundraising target of up to 520 million CNY [9] - The company has secured a designated project for semiconductor plating products, which is anticipated to contribute to performance growth [9]