Hisense V.T.(SH:600060) KAIYUAN SECURITIES·2024-11-01 06:00Investment Rating - The investment rating for Hisense Visual Technology is maintained as "Buy" [1][3]. Core Views - The report highlights that despite pressure on performance in Q3 2024, the overseas market continues to grow, and the trend of product structure upgrading persists. The company has experienced a revenue increase of 3.6% year-on-year for the first three quarters of 2024, with a notable 5.8% increase in Q3 revenue [3][4]. Summary by Sections Financial Performance - For Q1-Q3 2024, total revenue reached 406.5 billion yuan, with main business income at 378.5 billion yuan, and a net profit attributable to shareholders of 13.1 billion yuan, reflecting a decrease of 19.5% [3]. - In Q3 2024, revenue was 151.9 billion yuan, with main business income of 141.2 billion yuan, and a net profit of 4.8 billion yuan, also down by 19.5% [3]. Business Segments - The main business income for Q3 2024 was 141.2 billion yuan, with the smart display terminal revenue at 122 billion yuan, showing an 8% increase. The overseas revenue for this segment grew by 16% year-on-year [4]. - The sales of large-size and high-end products are accelerating, with global sales of 85-inch and above products increasing by 69% and 100-inch and above products by 214% year-on-year [4]. Profitability and Margins - The gross margin for Q3 2024 was 14.5%, down from previous quarters due to cost pressures and low-margin product handling. The net profit margin for Q3 was 3.1% [5]. - The report anticipates a gradual recovery in profit margins starting from Q4 2024, driven by improved panel prices and the implementation of a product structure upgrade strategy [5]. Future Projections - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 19.01 billion yuan, 22.67 billion yuan, and 25.34 billion yuan respectively, with corresponding EPS of 1.46 yuan, 1.74 yuan, and 1.94 yuan [3][7]. - The current stock price corresponds to a PE ratio of 15.3 for 2024, 12.9 for 2025, and 11.5 for 2026, indicating potential for growth as the company focuses on channel and product strength to drive overseas business [3].