Guosheng Intelligence(SH:688558) Huaxin Securities·2024-11-05 23:33Investment Rating - The report assigns a "Buy" rating for Guosheng Zhike (688558.SH) [1][3] Core Views - The machine tool industry is expected to recover, and the company's products are likely to benefit from this trend [1][3] - The company has shown resilience in cost control, with improved profitability expected as the industry recovers [2][3] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 799 million yuan, a year-on-year decrease of 5.65%, and a net profit attributable to shareholders of 99 million yuan, down 13.79% year-on-year [1] - In Q3 2024, the company reported revenue of 279 million yuan, a slight increase of 0.21% year-on-year, and a net profit of 37 million yuan, up 20.33% year-on-year [1][2] Industry Outlook - The machine tool market is anticipated to recover due to national policies promoting large-scale equipment updates and manufacturing upgrades, with new orders for metal processing machine tools increasing by 3.5% year-on-year from January to August 2024 [1] - The company's main products include mid-to-high-end CNC machine tools and intelligent automation production lines, with CNC machine tools accounting for 79.8% of total revenue in H1 2024 [1] Technological Innovation - The company is committed to high-precision, high-speed, and high-efficiency product development, with R&D investment of 26.02 million yuan in H1 2024, representing 5.0% of revenue [1] - The company has received 32 new patents, including 16 invention patents, and is progressing in the development of key components for five-axis machine tools, which may lead to import substitution and support future growth [1] Profitability Forecast - Revenue projections for 2024-2026 are 1.043 billion yuan, 1.149 billion yuan, and 1.281 billion yuan, respectively, with EPS estimates of 0.95 yuan, 1.20 yuan, and 1.46 yuan [3] - The company is positioned as one of the few domestic manufacturers successfully developing and mass-producing high-end CNC machine tools, indicating strong competitive advantages in the market [3]