SF Diamond(300179) Zhongyuan Securities·2024-11-06 11:09Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [1][12]. Core Insights - The company reported a slight year-on-year revenue increase in Q3 2024, achieving operating income of 136 million yuan, which represents a 4.25% increase quarter-on-quarter and a 2.43% increase year-on-year [1]. - The net profit attributable to shareholders for the first three quarters was 94 million yuan, down 14.30% year-on-year, with a non-recurring net profit of 85 million yuan, reflecting a 7.52% decrease [1]. - The company continues to invest heavily in R&D, with a research expense ratio of 11.95%, which is higher than the industry average, and has obtained 71 patents during the reporting period [1]. - The company is expanding its market by venturing into the consumer sector with cultivated diamonds, as evidenced by collaborations with major brands like Xiaomi and TAG Heuer [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved total revenue of 399 million yuan, with a slight year-on-year decline of 1.90% [1]. - The gross profit margin for the quarter was approximately 53.2%, an increase of 3.38 percentage points year-on-year [1]. - The company forecasts revenues of 589 million yuan, 645 million yuan, and 679 million yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 141 million yuan, 162 million yuan, and 171 million yuan [3][7]. Market Trends and Opportunities - The report highlights the stabilization of the oil and gas resource extraction and precision processing industries, which are expected to positively impact the company's revenue [1]. - The cultivated diamond market is anticipated to grow as new applications emerge, potentially expanding into various consumer goods sectors [1].