GONGNIU(SH:603195) Huachuang Securities·2024-11-05 17:02Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 86.8 CNY, compared to the current price of 74.09 CNY [1][2]. Core Insights - The company's main business shows resilience with a revenue of 12.6 billion CNY in Q3 2024, reflecting an 8.6% year-on-year increase, and a net profit of 3.26 billion CNY, up 16% year-on-year [1][2]. - The report highlights the company's strong operational resilience despite macroeconomic pressures and a downturn in the real estate sector, with specific growth contributions from new product launches in the electrical connection business and a robust channel management strategy [2]. - The gross margin for Q1-Q3 2024 is reported at 43.12%, a 1.2 percentage point increase year-on-year, although Q3 2024 saw a slight decline to 43.5% due to raw material price impacts [2]. - The company is expected to benefit from its channel and supply chain advantages, with a focus on three new business areas: new product categories, international expansion, and renewable energy [2]. Financial Summary - For 2024, the company is projected to achieve a total revenue of 16.885 billion CNY, a 7.6% increase from 2023, and a net profit of 4.342 billion CNY, reflecting a 12.2% growth [3][6]. - The earnings per share (EPS) is expected to rise from 2.99 CNY in 2023 to 3.36 CNY in 2024, with corresponding price-to-earnings (P/E) ratios of 22, 20, and 18 for 2024, 2025, and 2026 respectively [3][6]. - The company's total assets are projected to grow from 19.762 billion CNY in 2023 to 25.810 billion CNY by 2026, indicating a strong growth trajectory [6].