VEICHI(688698) 华龙证券·2024-11-05 04:00Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The company has shown rapid expansion in overseas business and continuous improvement in profitability. The third quarter of 2024 saw a revenue of 3.86 billion yuan, a year-on-year increase of 20.25%, and a net profit of 0.76 billion yuan, up 51.88% year-on-year. The gross margin reached 42.63%, an increase of 5.5 percentage points year-on-year, while the net margin was 18.67%, up 3.3 percentage points year-on-year [1][2] - The company is positioned as a leading player in the domestic industrial control sector, with expectations for steady growth in future performance. Forecasted net profits for 2024-2026 are 273 million yuan, 343 million yuan, and 426 million yuan, respectively, with corresponding P/E ratios of 25.0, 19.9, and 16.1 [1][2] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 1.157 billion yuan, a year-on-year increase of 22.37%, and a net profit of 210 million yuan, up 34.09% year-on-year [1] - The company’s revenue and net profit for Q3 2024 were 386 million yuan and 76 million yuan, respectively, reflecting a year-on-year increase of 20.25% and 51.88% [1] - The company’s gross margin improved to 42.63%, and the net margin was 18.67%, indicating significant profitability enhancement driven by strong overseas demand [1] Revenue and Profit Forecast - The projected revenue for 2024 is 1.69 billion yuan, with a growth rate of 29.52%. The net profit is expected to be 273 million yuan, reflecting a growth rate of 43.31% [2][4] - The company’s earnings per share (EPS) for 2024 is forecasted at 1.29 yuan, with a P/E ratio of 25.0 [2][4] Comparable Company Valuation - The average P/E ratios for comparable companies from 2024 to 2026 are 29.0, 23.5, and 19.1, respectively, indicating that the current valuation of the company is reasonable [1][3]