WOLONG ELECTRIC(SH:600580)2024-11-01 07:41Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a slight increase in non-recurring net profit in Q3 2024, benefiting from equipment updates in the short term, while the long-term focus is on the electric aviation sector [3][4] - Revenue for the first three quarters of 2024 reached 12.194 billion yuan, a year-on-year increase of 1.06%, while net profit attributable to shareholders decreased by 30.92% to 638 million yuan [1][2] - The company is expected to benefit from the implementation of equipment update policies starting in Q4 2024, which will drive demand for industrial and daily-use motors [3] Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 4.216 billion yuan, a year-on-year decline of 0.85%, while net profit attributable to shareholders was 245 million yuan, down 23.03% [1][2] - The gross margin decreased by 0.48 percentage points to 25.00% due to rising raw material prices [2] - The company maintained good cost control, with total expense ratios for sales, management, R&D, and financial expenses at 4.96%, 7.58%, 3.93%, and 1.33%, respectively [2] Future Outlook - The company has strategic partnerships, such as with Shanghai Jiaotong University, to advance research in electric aviation propulsion systems, indicating a strong position in the low-altitude economy sector [3] - Profit forecasts for 2024-2026 are maintained at 917 million, 1.095 billion, and 1.180 billion yuan, respectively, with corresponding P/E ratios of 19, 16, and 15 [4]