Camel Group(SH:601311) Haitong Securities·2024-11-06 01:57Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report highlights that Camel Group has achieved a revenue of 11.33 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 10%, and a net profit attributable to shareholders of 490 million yuan, up 22% year-on-year [4] - The company is recognized as an important participant in the circular economy, with a well-established lead-acid battery recycling industry chain and a manufacturing capacity of approximately 40 million kVAh [4] - The international development strategy is a key focus for the company, with efforts to enhance overseas sales and product volume [5] - Earnings forecasts for the company are projected at 15.3 billion yuan, 16 billion yuan, and 16.8 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 720 million yuan, 810 million yuan, and 900 million yuan [5] Financial Summary - In Q3 2024, the company reported a revenue of 3.81 billion yuan, a year-on-year increase of 1%, and a net profit of 170 million yuan, up 44% year-on-year [4] - The gross margin for Q3 2024 was 13.4%, a decrease of 1.2 percentage points year-on-year, while the net margin was 4.8%, an increase of 1.6 percentage points year-on-year [4] - The company’s revenue and profit have shown improvement, driven by steady sales of lead-acid batteries and rapid growth in low-voltage lithium battery shipments [4] Valuation and Comparison - The report suggests a reasonable valuation range for the company at 10.42 to 11.65 yuan based on a price-to-earnings ratio of 17-19 times for 2024 [5] - The earnings per share (EPS) is projected to be 0.61 yuan, 0.69 yuan, and 0.77 yuan for 2024, 2025, and 2026 respectively [6][8] - The company’s financial metrics indicate a net profit margin of 4.1% for 2023, expected to rise to 5.3% by 2026 [8]