WOLONG ELECTRIC(600580) 国元证券·2024-11-05 08:37Investment Rating - Maintain "Overweight" rating [1] Core Views - The company's revenue growth is steady, but net profit has declined [2] - Revenue for Q1-3 2024 reached 12.194 billion yuan, a year-on-year increase of 1.06% [2] - Net profit attributable to the parent company was 638 million yuan, a year-on-year decrease of 30.92% [2] - The decline in net profit is mainly due to rising raw material costs and a decrease in non-recurring gains such as government subsidies [2] - The company is making steady progress in the low-altitude economy sector, particularly in electric aviation [3] Financial Performance - Gross profit margin for Q1-3 2024 was 25.46%, down 0.47 percentage points year-on-year [3] - Operating expenses ratio increased by 1.07 percentage points to 18.77% [3] - Sales expenses ratio, management expenses ratio, financial expenses ratio, and R&D expenses ratio were 5.31%, 7.88%, 1.42%, and 4.16% respectively [3] Low-Altitude Economy and Electric Aviation - The company has been developing electric aviation since 2019, focusing on urban air mobility, emergency rescue, and logistics [3] - Breakthroughs have been made in core technologies such as system lightweighting, dynamic sealing, electromagnetic compatibility, and low-cost mass production [3] - The company has collaborated with the China Academy of Civil Aviation Science and Technology to establish a laboratory for airworthiness verification of new energy aircraft electric power systems [3] - Recently, the company showcased a 100-kilowatt-level variable-configuration distributed electric power system developed in collaboration with COMAC [3] Profit Forecast - Revenue for 2024-2026 is expected to be 16.696 billion yuan, 17.919 billion yuan, and 19.253 billion yuan respectively [4] - Net profit attributable to the parent company is forecasted to be 899 million yuan, 1.006 billion yuan, and 1.112 billion yuan for 2024-2026 [4] - EPS for 2024-2026 is projected to be 0.69 yuan, 0.77 yuan, and 0.85 yuan per share [4] - The P/E ratio for 2024-2026 is estimated to be 24x, 21x, and 19x respectively [4] Historical Financial Data - Revenue for 2022 and 2023 was 14.266 billion yuan and 15.567 billion yuan respectively [6] - Net profit attributable to the parent company for 2022 and 2023 was 799.56 million yuan and 529.85 million yuan respectively [6] - ROE for 2022 and 2023 was 8.89% and 5.63% respectively [6] Valuation and Market Data - The current stock price is 15.92 yuan [7] - The 52-week high and low prices are 18.41 yuan and 8.69 yuan respectively [7] - The company's market capitalization is 20.738 billion yuan [7]