Hisense V.T.(SH:600060) Guotai Junan Securities·2024-11-01 05:40Investment Rating - The report maintains an "Accumulate" rating for Hisense Visual Technology [4][15]. Core Views - The company's smart display business shows resilience in overseas growth, but short-term gross margins are pressured by rising panel costs and an increase in Black Friday order proportions. The earnings forecasts for 2024-2026 have been revised downwards, with expected EPS of 1.53, 1.91, and 2.14 yuan, reflecting year-on-year changes of -4.5%, +24.5%, and +12.1% respectively [2][15]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 40.65 billion yuan, a year-on-year increase of 3.63%, while net profit attributable to shareholders was 1.31 billion yuan, down 19.53% year-on-year. In Q3 2024, revenue was 15.189 billion yuan, up 5.84% year-on-year, with a net profit of 476 million yuan, down 19.46% year-on-year [11][12]. Revenue Analysis - The global revenue for the smart display terminal business reached 12.197 billion yuan, a year-on-year increase of 8.03%. Overseas revenue was 8.181 billion yuan, up 16.38% year-on-year, with significant growth in shipments to the US and Europe [12][13]. Profitability Analysis - The gross margin for the first three quarters of 2024 was 15.31%, down 1.68 percentage points year-on-year. In Q3 2024, the gross margin was 14.47%, down 2.16 percentage points year-on-year. The company effectively controlled its expense ratios during this period [13][14]. Cash Flow and Financial Position - As of Q3 2024, the company had cash and cash equivalents plus trading financial assets totaling 14.647 billion yuan, an increase of 9.18% year-on-year. The operating cash flow for Q3 2024 was 1.737 billion yuan, up 1.83% year-on-year [14][16].