Eddie Precision(603638) 光大证券·2024-11-05 09:41Investment Rating - Maintain "Overweight" rating [3] Core Views - The company's performance shows steady growth, with significant increases in both revenue and net profit in Q3 2024 [1] - Hydraulic components business performs well, and equipment updates are expected to bring incremental demand [2] - Continuous R&D investment in industrial robots, RV reducers, and cutting tools opens up new growth opportunities [2] Financial Performance - 2024Q1-Q3 revenue reached RMB 2,038 million, up 26.56% YoY, with net profit of RMB 281 million, up 32.30% YoY [1] - 2024Q3 revenue was RMB 652 million, up 39.91% YoY, with net profit of RMB 84 million, up 73.21% YoY [1] - Gross margin in 2024Q3 was 31.85%, up 0.34 percentage points YoY, while net margin was 12.90%, up 2.48 percentage points YoY [1] Business Segments - Hydraulic components revenue in H1 2024 was RMB 652 million, up 10.23% YoY [2] - Other products, including hard alloy cutting tools, industrial robots, and RV reducers, contributed RMB 197 million in H1 2024, accounting for 14.18% of total revenue [2] Industry Outlook - The implementation of equipment update policies is expected to accelerate the replacement of outdated construction machinery, benefiting the company as a leading engineering machinery accessory provider [2] R&D and Innovation - R&D expenses in 2024Q1-Q3 were RMB 94 million, with an R&D expense ratio of 4.62% [2] - The company has established specialized R&D teams for industrial multi-axis robots and hard alloy products, enhancing its independent R&D capabilities [2] Valuation and Forecast - Forecasted net profit for 2024-2026 is RMB 351 million, RMB 424 million, and RMB 503 million, respectively, with EPS of RMB 0.42, RMB 0.51, and RMB 0.60 [3] - ROE is expected to increase from 9.80% in 2024 to 11.88% in 2026 [3]