SINYUAN ZM(SZ:301398) Yong Xing Zheng Quan·2024-11-03 02:00Investment Rating - The report maintains a "Buy" rating for the company [5][15]. Core Views - The company has shown a robust revenue performance in Q3 2024, with a year-on-year increase of approximately 26.89% and a quarter-on-quarter increase of about 3.49% [2]. - The company is a pioneer in the magnesium alloy die-casting sector, focusing on applications in automotive lightweighting, electrification, and intelligence, with simultaneous domestic and international development [2]. - The company has received new product designations for magnesium alloy components in the electric vehicle sector, expected to start mass production in June 2025, with projected sales of approximately 170 million RMB from 2025 to 2027 [4]. Summary by Sections Revenue Performance - In the first three quarters of 2024, the company achieved revenue of approximately 288 million RMB, a year-on-year increase of about 13.54%. The net profit attributable to the parent company was approximately 56 million RMB, a decrease of about 3.72% year-on-year [1]. Profitability Analysis - The gross margin for Q3 2024 was approximately 33.33%, a decrease of 3.32 percentage points year-on-year but an increase of 0.99 percentage points quarter-on-quarter. The net profit margin was approximately 18.28%, down 5.19 percentage points year-on-year and 0.82 percentage points quarter-on-quarter [3]. Future Growth Projections - The company is expected to benefit from the automotive lightweighting trend, with revenue forecasts for 2024, 2025, and 2026 projected at 410 million, 490 million, and 580 million RMB, respectively, representing year-on-year growth rates of approximately 17.8%, 18.1%, and 18.3% [5][7]. - The net profit attributable to the parent company is projected to be approximately 80 million, 100 million, and 110 million RMB for the same years, with year-on-year growth rates of about 4.4%, 15.6%, and 16.7% [5][7].