VEICHI(688698) 海通证券·2024-11-06 01:59Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company has shown strong revenue growth with a 22.37% year-on-year increase in revenue for the first three quarters of 2024, reaching 1.157 billion yuan, and a 34.09% increase in net profit attributable to shareholders, amounting to 210 million yuan [5][6] - The improvement in profitability is attributed to enhanced production automation, optimized product design, and cost structure, leading to a gross margin increase of 2.57 percentage points [5] - The company is expanding its industrial control automation product layout and is expected to continue to enhance its competitive edge in the market [8] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 386 million yuan, a 20.25% increase year-on-year, with a gross margin of 42.63%, up 5.52 percentage points [6] - The net profit for Q3 2024 was 76 million yuan, reflecting a 51.88% year-on-year growth [6] - The company’s expense ratio increased to 24.51% in Q3 2024, with sales, management, and R&D expenses rising [6] Product Development - The company has diversified its product offerings in frequency converters, servo systems, and control systems, catering to various industries including heavy industry, light industry, and high-end equipment [7][8] - The frequency converter segment saw a revenue decline of 3.13% for general products but a significant 51.69% increase for industry-specific products [6] Future Outlook - The company is projected to achieve net profits of 273 million yuan, 344 million yuan, and 437 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 1.29 yuan, 1.63 yuan, and 2.07 yuan [8][12] - The estimated P/E ratio for 2024 is between 25-30 times, suggesting a reasonable price range of 32.25 yuan to 38.7 yuan [8]