SHUANGHUAN COMPANY(002472) Soochow Securities·2024-11-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company's Q3 2024 performance met expectations, with a total revenue of 2.42 billion yuan for the quarter, reflecting a year-on-year increase of 10.73% and a quarter-on-quarter increase of 7.68% [2][3] - The company is positioned as a leader in electric drive gears, benefiting from the ongoing electrification of vehicles and the restructuring of the automotive gear market [4] - The company has expanded its business into precision reducers for industrial robots and consumer gears, which are expected to drive long-term growth [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 6.743 billion yuan, a year-on-year increase of 14.83%, and a net profit attributable to shareholders of 738 million yuan, up 25.21% year-on-year [2] - The Q3 2024 gross margin was 23.96%, an increase of 1.13 percentage points from the previous quarter, attributed to cost reduction and efficiency improvements [3] - The company’s net profit margin for Q3 2024 was 10.95%, a slight decrease of 0.25 percentage points from the previous quarter [3] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 1.031 billion yuan, 1.266 billion yuan, and 1.546 billion yuan respectively, with corresponding EPS of 1.22 yuan, 1.49 yuan, and 1.83 yuan [5] - The price-to-earnings ratio for 2024-2026 is projected to be 23.55, 19.17, and 15.70 respectively [5]