SHUANGHUAN COMPANY(002472) Guoxin Securities·2024-11-01 06:40Investment Rating - The investment rating for the company is "Outperform the Market" [3][12]. Core Views - The company has achieved a net profit growth of 25% year-on-year in the first three quarters of 2024, driven by continuous growth in its new energy vehicle and intelligent actuator businesses, as well as ongoing cost reduction and efficiency improvement efforts [1][5]. - The gross margin for Q3 2024 increased to 24.0%, up 2.3 percentage points year-on-year and 1.1 percentage points quarter-on-quarter, attributed to improved capacity utilization, ongoing cost reduction initiatives, and an enhanced product mix [1][9]. - The company is positioned to benefit from a third wave of growth opportunities, including international expansion and platform development, which are expected to open new growth avenues [1][10]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 6.74 billion yuan, a year-on-year increase of 14.8%, and a net profit of 740 million yuan, up 25.2% year-on-year [1][5]. - The company’s revenue for Q3 2024 was 2.42 billion yuan, reflecting a year-on-year increase of 10.7% and a quarter-on-quarter increase of 7.7% [1][5]. - The net profit margin for Q3 2024 was 11.0%, showing a year-on-year increase of 0.8 percentage points [9][11]. Future Outlook - The company is expected to continue its growth trajectory with a projected net profit of 1.04 billion yuan in 2024, 1.28 billion yuan in 2025, and 1.52 billion yuan in 2026, with corresponding EPS of 1.22 yuan, 1.50 yuan, and 1.78 yuan respectively [12][14]. - The global market for new energy vehicle transmission gears is estimated to reach approximately 30 billion yuan by 2025, indicating significant growth potential for the company [11][12]. - The company is actively pursuing international expansion, including a planned investment of 120 million euros in Hungary to establish a production base for new energy vehicle gear components [11][12].