HASCO(600741) 东方证券·2024-11-03 03:13Investment Rating - The report maintains a Buy rating for the company with a target price of 18.72 CNY [2][4] Core Views - The company's Q3 performance met expectations, with revenue of 421.99 billion CNY, a 5.4% YoY decline but a 4.8% QoQ increase [1] - Net profit attributable to the parent company in Q3 was 16.11 billion CNY, down 15.2% YoY but up 0.7% QoQ [1] - The company achieved stable operations by expanding incremental markets and implementing cost control measures despite industry challenges [1] - Q3 gross margin improved to 12.3%, up 0.6 percentage points QoQ, while the expense ratio slightly improved [1] - The company is advancing its neutralization strategy, with over 60% of revenue coming from non-industry clients in H1, helping to offset the decline in industry client sales [1] - The company's global business platform is opening new opportunities, with international clients including Tesla, Mercedes-Benz, and BMW [1] Financial Performance - Revenue for the first three quarters was 1194.91 billion CNY, down 1.7% YoY, with net profit attributable to the parent company at 44.73 billion CNY, down 5.6% YoY [1] - Operating cash flow for the first three quarters was 56.19 billion CNY, down 22.5% YoY [1] - The company's revenue from exterior and interior parts business in Q3 was 926 billion CNY, with a net profit of 27.1 billion CNY, showing a slight YoY increase [1] Business Segments - Exterior and interior parts: Revenue of 926 billion CNY, net profit of 27.1 billion CNY in Q3 [1] - Metal forming and molds: Revenue of 57 billion CNY, net profit of 2.1 billion CNY in Q3 [1] - Functional parts: Revenue of 192 billion CNY, net profit of 16.6 billion CNY in Q3 [1] - Electronic and electrical parts: Revenue of 47 billion CNY, net loss of 0.9 billion CNY in Q3 [1] - Heat treatment parts: Revenue of 4 billion CNY, net loss of 0.2 billion CNY in Q3 [1] Future Outlook - The company is expected to achieve steady growth with the support of non-industry clients and new energy vehicle business [1] - The company has secured new orders, with over 50% of domestic independent brand orders and over 70% of new energy vehicle business in H1 [1] Valuation and Forecast - The report forecasts EPS for 2024-2026 at 2.08, 2.24, and 2.32 CNY, respectively, with a target price of 18.72 CNY based on a 9x PE ratio [2] - The company's revenue is expected to grow at a CAGR of 6.4% from 2024 to 2026, reaching 201.7 billion CNY by 2026 [3]