S.C(300724) Changjiang Securities·2024-11-01 06:14Investment Rating - The report maintains a "Buy" rating for the company [7][9]. Core Insights - The company reported steady progress in acceptance and performance that exceeds the previously forecasted range, with a strong business platform across various sectors including TOPCon, HJT, perovskite, semiconductor equipment, and composite busbars [4][6]. - For the first three quarters of 2024, the company achieved revenue of 12.344 billion, a year-on-year increase of 92.72%, and a net profit attributable to shareholders of 2.023 billion, up 65.45% year-on-year [4][6]. - The third quarter of 2024 saw revenue of 5.722 billion, a significant year-on-year increase of 146.41%, and a net profit of 797 million, reflecting a 69.10% increase year-on-year [4][6]. Financial Performance Summary - The company reported a gross margin of 27.80% for the first three quarters of 2024, a slight decrease of 0.09 percentage points year-on-year, while the net profit margin was 16.39%, down 2.77 percentage points year-on-year [5][6]. - In Q3 2024, the gross margin was 23.38%, down 7.05 percentage points year-on-year, and the net profit margin was 13.92%, down 6.57 percentage points year-on-year [5][6]. - The operating cash flow for Q3 2024 was 1.705 billion, indicating continuous improvement [4][6]. Business Development - The company continues to maintain a high market share in TOPCon, benefiting from new technology introductions and market expansion [6]. - HJT equipment has secured mass production orders from leading clients, with significant advancements in deposition technology [6]. - The perovskite segment shows positive order trends, with large-scale coating equipment and large-size flash evaporators being delivered to downstream customers [6]. - In the semiconductor sector, the company is expanding into furnace tube equipment and has won orders for silicon carbide wet processing equipment [6]. - In the lithium battery equipment sector, the company successfully delivered vacuum winding aluminum foil coating equipment [6]. Future Profitability Projections - The company is expected to achieve net profits of 2.765 billion and 3.488 billion for 2024 and 2025, respectively, corresponding to price-to-earnings ratios of 9x and 7x [7].