SHUANGHUAN COMPANY(002472) 国泰君安·2024-11-04 00:45Investment Rating - The report maintains a "Buy" rating and raises the target price to 36.90 CNY from the previous 33.04 CNY [4][12]. Core Insights - The company continues to enhance its gross margin in Q3 2024, with a competitive landscape solidifying, supported by product structure optimization and cost reduction efforts, which opens up profit growth potential. Rapid growth is observed in the new energy and consumer gear segments, alongside accelerated overseas expansion [3][4]. Financial Summary - For the first nine months of 2024, the company achieved revenue of 6.74 billion CNY, a year-on-year increase of 14.8%. The net profit attributable to shareholders reached 740 million CNY, up 25.2% year-on-year, while the net profit excluding non-recurring items was 710 million CNY, reflecting a 29.2% increase [4][5]. - In Q3 2024, the company reported revenue of 2.42 billion CNY, a 10.7% year-on-year increase and a 7.7% quarter-on-quarter increase. The net profit attributable to shareholders was 270 million CNY, marking a 20.0% year-on-year increase and a 5.3% quarter-on-quarter increase [4][5]. - The gross margin for Q3 2024 was 23.96%, an increase of 2.3 percentage points year-on-year and 1.1 percentage points quarter-on-quarter. The net profit margin was 11.4%, up 0.9 percentage points year-on-year [4][5]. Business Development - The company is enhancing its overseas market presence and diversifying its business. It is expanding its product line through Ring Drive Technology, covering various intelligent actuators and establishing a production base in Hungary to strengthen its foothold in the European market [4][12]. - The company is positioned as a leader in the precision gear sector, with strong pricing power and improving profitability. The upcoming harvest period for its investments in robotics, consumer gears, and overseas markets is anticipated to drive rapid revenue growth [4][12].