WLY(000858) 天风证券·2024-11-06 11:05Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [4][11]. Core Views - The company has demonstrated steady and high-quality development, with a cash dividend plan that boosts market confidence. The operating income, net profit attributable to the parent company, and net profit excluding non-recurring items for Q3 2024 were 172.68 billion, 58.74 billion, and 58.94 billion yuan respectively, showing year-on-year growth of 1.39%, 1.34%, and 1.61% [1][2]. - The gross margin has steadily increased, attributed to the rise in factory prices and product mix upgrades, while the net margin slightly declined due to increased expense ratios [1][3]. Financial Performance Summary - For Q3 2024, the company reported a gross margin of 76.17% and a net margin of 35.41%, with the gross margin increasing by 2.77 percentage points year-on-year and the net margin decreasing by 0.06 percentage points [1]. - The operating cash flow for Q3 2024 was 163.66 billion yuan, reflecting a year-on-year increase of 47.99%, and the company’s contract liabilities reached a historical high of 74.63 billion yuan [2]. - The company plans to maintain a cash dividend rate of no less than 70% of the net profit attributable to the parent company, with a minimum total cash dividend of 20 billion yuan for the years 2024-2026 [2]. Earnings Forecast - The company is expected to achieve revenue growth of 9% year-on-year for the years 2024 to 2026, with projected revenues of 905 billion, 983 billion, and 1071 billion yuan respectively. The net profit attributable to the parent company is also forecasted to grow by 9% annually during the same period [3][6]. - The earnings per share (EPS) is projected to increase from 8.49 yuan in 2024 to 10.04 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 18X, 16X, and 15X for the respective years [3][6].