SERES(SH:601127) Soochow Securities·2024-11-04 12:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4] Core Views - The company's Q3 2024 performance exceeded expectations, with significant improvements in revenue and net profit [2][3] - The company reported a Q3 revenue of 41.582 billion yuan, a year-on-year increase of 636.3% and a quarter-on-quarter increase of 8.1% [2] - The net profit for Q3 was 2.413 billion yuan, a substantial improvement from a loss of 0.95 billion yuan in Q3 2023, reflecting a quarter-on-quarter increase of 71.8% [2][3] Summary by Sections Revenue and Profitability - Q3 2024 sales volume reached 133,600 units, representing a year-on-year increase of 199.6% and a quarter-on-quarter increase of 9.8% [3] - The average selling price (ASP) decreased to 311,200 yuan, down 1.6% quarter-on-quarter but up 145.8% year-on-year [3] - Gross margin for Q3 was 25.53%, with a quarter-on-quarter decrease primarily due to accounting policy adjustments [3] Cost and Expenses - The company's expense ratios improved significantly, with selling, general, and administrative expenses decreasing [3] - Financial expenses for Q3 were -170 million yuan, indicating a reduction in costs compared to previous quarters [3] Future Earnings Forecast - The net profit forecasts for 2024, 2025, and 2026 have been raised to 6.206 billion yuan, 10.961 billion yuan, and 15.857 billion yuan respectively, reflecting strong order and delivery performance [4] - Corresponding P/E ratios are projected at 27, 15, and 10 times for the respective years [4] Market Data - The closing price of the stock is 113.93 yuan, with a market capitalization of approximately 172 billion yuan [5] - The company has a price-to-book ratio of 12.75 [5] Financial Health - The company reported a total asset value of 51.245 billion yuan in 2023, with a projected increase to 113.388 billion yuan by 2024 [9] - The debt-to-asset ratio stands at 89.20%, indicating a high level of leverage [6]