First(SH:603806) Huachuang Securities·2024-11-04 01:10Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company reported a revenue of 15.174 billion yuan for the first three quarters of 2024, a year-on-year decrease of 8.86%, with a net profit attributable to shareholders of 1.258 billion yuan, down 12.08% year-on-year [1] - The gross margin for the company was 15.56%, an increase of 1.49 percentage points year-on-year, while the net profit margin was 8.29%, a decrease of 0.30 percentage points year-on-year [1] - In Q3 2024, the company achieved a revenue of 4.411 billion yuan, a year-on-year decline of 26.90% and a quarter-on-quarter decline of 18.96%, with a net profit of 330 million yuan, down 39.67% year-on-year and 19.01% quarter-on-quarter [1] - The company’s cash flow from operations improved quarter-on-quarter, reaching 1.885 billion yuan in Q3 2024, an increase of 101% [2] Summary by Sections Revenue and Profitability - The company’s total revenue for 2024 is projected to be 21.647 billion yuan, reflecting a year-on-year decrease of 4.2%, with net profit expected to be 1.836 billion yuan, a slight decrease of 0.8% year-on-year [3] - The gross margin is expected to improve to 16.1% in 2024, while the net profit margin is projected to be 8.5% [3] Market Position and Business Development - The company maintains a stable market share in the film business, with shipments of approximately 2-2.2 billion square meters in the first three quarters of 2024, and Q3 shipments of 700-710 million square meters [2] - The electronic materials business is rapidly developing, with shipments of photosensitive dry film expected to exceed 1.5 billion square meters in 2024, showing over 30% year-on-year growth [2] Financial Metrics - The company’s total assets are projected to reach 23.446 billion yuan in 2024, with a debt-to-asset ratio of 26.7% [3] - The earnings per share (EPS) for 2024 is expected to be 0.70 yuan, with a price-to-earnings (P/E) ratio of 25 [3]