SACO(SZ:002025) EBSCN·2024-11-05 05:08Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company experienced a significant decline in revenue and net profit in the first three quarters of 2024, with revenue at 3.995 billion yuan, down 23.22% year-on-year, and net profit at 412 million yuan, down 30.84% year-on-year [1][2] - Despite short-term pressure from traditional market demand fluctuations, the company is seeing continuous growth in small-batch, multi-variety orders [2] - The company has implemented effective cost reduction and efficiency improvement measures, resulting in a significant increase in gross margin [2] - The planned acquisition of the remaining 49% stake in its subsidiary Smart will accelerate expansion in the civilian motor market [3] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 3.995 billion yuan, a decrease of 23.22% year-on-year, and a net profit of 412 million yuan, down 30.84% year-on-year [1] - In Q3 2024, revenue was 1.073 billion yuan, down 32.17% year-on-year, with a net profit of 26.67 million yuan, down 84.08% year-on-year [1] - The company's gross margin for the first three quarters of 2024 was 44.36%, an increase of 9.11 percentage points year-on-year [2] Cost Management - The company has implemented a cost reduction and efficiency improvement plan for 2024, leading to significant results in cost control [2] - The sales, management, and R&D expense ratios were 3.00%, 11.54%, and 13.01%, respectively, with year-on-year increases of 0.98 percentage points, 4.10 percentage points, and 4.26 percentage points [2] Acquisition and Market Expansion - The company plans to acquire the remaining 49% stake in Smart for approximately 19.9 million yuan, which is expected to enhance its development in the civilian motor market [3] - The acquisition aims to address the concerns of Smart's foreign shareholders regarding the extension of the joint venture's operating period [3] Earnings Forecast and Valuation - The net profit forecasts for 2024, 2025, and 2026 are adjusted to 626 million yuan, 894 million yuan, and 1.123 billion yuan, respectively [3] - The corresponding EPS for 2024, 2025, and 2026 are projected to be 1.37 yuan, 1.96 yuan, and 2.46 yuan, with current PE ratios of 40x, 28x, and 22x [3]