FIRST TRACTOR(SH:601038) Guohai Securities·2024-11-01 12:00Investment Rating - The report maintains a "Buy" rating for Yituo Co., Ltd. (601038) [1] Core Views - The company's Q3 revenue and profit declined year-on-year due to increased promotional activities leading to a decrease in gross margin [5] - The trend of product large-scale development continues, with an increase in the production of large tractors [5] Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 2.93 billion yuan, a year-on-year decrease of 2.45%, and a net profit attributable to shareholders of 200 million yuan, down 40.9% year-on-year [5] - For the first three quarters of 2024, the company reported total revenue of 10.74 billion yuan, an increase of 4.7% year-on-year, and a net profit of 1.1 billion yuan, up 1.45% year-on-year [4] Market Trends - In the first nine months of 2024, the production of large tractors increased by 9.4% year-on-year, while the production of medium and small tractors decreased by 10.0% and 16.1%, respectively [5] - The proportion of large tractors in total production reached 23.5%, an increase of 3.8 percentage points year-on-year, indicating a continued trend towards larger products [5] Earnings Forecast - The company is projected to achieve revenues of 12.015 billion yuan, 12.927 billion yuan, and 13.853 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 4.18%, 7.59%, and 7.16% [3] - The net profit attributable to shareholders is expected to be 1.04 billion yuan, 1.21 billion yuan, and 1.379 billion yuan for the same years, with growth rates of 4.29%, 16.40%, and 13.92% [3]