VEICHI(SH:688698) Southwest Securities·2024-11-01 07:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a record high gross margin in Q3, with promising prospects for overseas business [1][2] - Revenue for the first three quarters of 2024 reached 1.16 billion yuan, a year-on-year increase of 22.4%, while net profit attributable to shareholders was 210 million yuan, up 34.1% [1] - The company is expected to see continued revenue growth, with projected revenues of 1.65 billion yuan, 2.03 billion yuan, and 2.51 billion yuan for 2024-2026, respectively [4] Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 390 million yuan, a 20.3% increase year-on-year, and a net profit of 80 million yuan, up 51.9% [1] - The gross margin for the first three quarters of 2024 was 40.5%, an increase of 2.6 percentage points year-on-year, while the net profit margin was 17.7%, up 1.3 percentage points [2] - The company’s R&D expense ratio increased to 12.2% in the first three quarters of 2024, reflecting a commitment to enhancing technological advantages [4] Product and Market Analysis - The company saw significant growth in specialized machinery revenue, which increased by 51.7% year-on-year to 450 million yuan, while general-purpose inverters revenue decreased by 3.1% to 300 million yuan [3] - Domestic revenue grew by 17.1% to 810 million yuan, while overseas revenue surged by 38.6% to 320 million yuan, increasing the overseas revenue share to 27.6% [3] Strategic Initiatives - The company is focusing on optimizing product design and cost structure to enhance efficiency and reduce costs [2] - Collaborations with partners like Keda Li and Shanghai Mengli are aimed at accelerating the expansion of the robotics business [4]