SANHUA(SZ:002050) Tianfeng Securities·2024-11-01 07:15Investment Rating - The report maintains a "Buy" rating for the company, with a target price set above the current price of 21.88 CNY [5]. Core Insights - The company achieved a revenue of 20.56 billion CNY in the first three quarters of 2024, representing a year-on-year growth of 8.36%. The net profit attributable to the parent company was 2.3 billion CNY, up 6.59% year-on-year [1][2]. - The growth in revenue for Q3 2024 was primarily driven by the home appliance sector, supported by domestic policies encouraging appliance upgrades. The automotive parts business also showed strong order fulfillment, with ongoing construction of factories in Mexico and Poland to enhance global supply capabilities [1][3]. - The company is focusing on emerging businesses such as robotics and energy storage, which are expected to contribute to long-term growth. The energy storage sector is gaining traction, and the company aims to replicate its success in automotive parts within this field [3]. Financial Summary - For Q3 2024, the company reported a gross margin of 28.2%, a decrease of 2.6 percentage points year-on-year, attributed to a high base from the previous year. The net profit margin for the same period was 11.4%, down 0.4 percentage points year-on-year [2][4]. - The company forecasts net profits of 3.1656 billion CNY, 3.7441 billion CNY, and 4.3867 billion CNY for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 25.8X, 21.8X, and 18.6X [3][4]. - The total revenue is projected to grow from 24.56 billion CNY in 2023 to 35.25 billion CNY by 2026, with a compound annual growth rate of approximately 12.93% [4][9].