Changshu Tongrun Auto Accessory (603201)2024-11-04 02:23Investment Rating - The report assigns an "Accumulate" rating to Changrun Co., Ltd. (603201) [4] Core Views - Changrun Co., Ltd. is positioned as a leader in the domestic jack market and is expected to develop a cross-border e-commerce platform for automotive repair, with performance anticipated to maintain high growth [4] - The company reported a revenue of 2.236 billion yuan for the first three quarters of 2024, reflecting a year-on-year increase of 4.28%, and a net profit attributable to shareholders of 153 million yuan, up 20.89% year-on-year [1][4] - The gross margin improved to 20.68% in Q1-Q3 2024, an increase of 1.84 percentage points compared to the same period last year, primarily driven by the automotive parts business [1] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 786 million yuan, a decrease of 7.01% year-on-year, while the net profit attributable to shareholders was 66.26 million yuan, an increase of 9.45% year-on-year [1] - Cumulative cash flow from operating activities for Q1-Q3 2024 was 270 million yuan, a significant increase of 78.42% year-on-year [1] Business Strategy - The company maintains a strong presence in both OEM and aftermarket segments, collaborating with major automotive manufacturers such as Ford, General Motors, and BYD [1] - Changrun has established a sales network in over 100 countries and regions, with products sold in more than 30,000 large retail stores and automotive repair chains globally [1] Growth Drivers - The company is focusing on the rapid development of cross-border e-commerce, leveraging its platform advantages on sites like Amazon and Walmart, and expanding its overseas warehouse capabilities [1] - The automotive parts business, which accounts for nearly 40% of revenue, has shown a gross margin of 25.09%, significantly higher than the 20.79% for the entire year of 2023 [1]