Sirui(SH:688102) AVIC Securities·2024-11-03 02:30Investment Rating - The investment rating for the company is "Buy," indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [12]. Core Insights - The company, Sui Rui New Materials (688102), reported a revenue of 964 million yuan for the first three quarters of 2024, reflecting a year-on-year growth of 11.0%. The net profit attributable to shareholders was 78.27 million yuan, up 14.4% year-on-year, with a basic EPS of 0.11 yuan [4][7]. - The growth in revenue is primarily driven by the high demand in the power equipment industry and the acceleration of commercial aerospace satellite launches, which boosted the demand for copper alloy products [4]. - The company is expanding its production capacity through a new private placement project, aiming to raise 600 million yuan for various projects, including the production of liquid rocket engine components and medical imaging equipment [4][6]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 340.3 million yuan, a year-on-year increase of 10.1% and a quarter-on-quarter increase of 1.0%. The net profit for Q3 was 22.33 million yuan, up 41.2% year-on-year but down 28.8% quarter-on-quarter [4][10]. - The gross margin for the first three quarters of 2024 was 23.0%, an increase of 2.77 percentage points year-on-year, while the net margin was 8.2%, up 0.35 percentage points year-on-year [4]. Business Segments - The copper alloy business is experiencing steady growth, with significant contributions from high-conductivity and high-strength copper alloys, as well as mid-voltage electrical contact materials [4]. - The company is focusing on international markets, particularly in the semiconductor and electric motor sectors, and is making progress in overseas capacity construction, particularly in Thailand [4]. Future Outlook - The company expects to enhance its production efficiency and capacity through the new fundraising initiatives, which will support the development of new products and technologies [4][6]. - Revenue projections indicate a steady growth trajectory, with expected revenues of 1.425 billion yuan in 2024, representing a growth rate of 20.8% [7].