Quechen Company(605183) 国海证券·2024-11-01 11:13Investment Rating - The investment rating for the company is "Buy" (maintained) [1][8][11] Core Views - The company's silica production and sales volume increased slightly quarter-on-quarter, with third-quarter net profit showing a slight year-on-year increase [1][6] - The company has successfully developed a technology that uses biomass (rice husk) instead of natural gas as fuel, which enhances its product competitiveness internationally [6][8] - The company reported a revenue of 1.63 billion yuan for the first three quarters of 2024, a year-on-year increase of 23.57%, and a net profit of 379 million yuan, up 24.34% year-on-year [4][5] Financial Performance Summary - In Q3 2024, the company achieved a revenue of 563 million yuan, a year-on-year increase of 19.15% and a quarter-on-quarter increase of 2.69% [5] - The net profit for Q3 2024 was 117 million yuan, reflecting a year-on-year increase of 3.65% but a quarter-on-quarter decrease of 15.81% [5] - The average price of silica products increased by 0.92% compared to the previous quarter and by 5.19% compared to the same period last year [3][4] Earnings Forecast - The company is expected to achieve revenues of 2.25 billion yuan, 2.74 billion yuan, and 2.98 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 515 million yuan, 612 million yuan, and 689 million yuan [8][9][11] - The projected P/E ratios for 2024, 2025, and 2026 are 14, 11, and 10 respectively, indicating a favorable valuation based on the company's technological advantages [8][9]