Cubic(SH:688665) Huachuang Securities·2024-11-07 09:32Investment Rating - The report assigns a "Recommended" rating to the company, with a target price of 40.2 yuan, compared to the current price of 30.75 yuan [1]. Core Insights - The company has shown continuous growth in sales, achieving a revenue of 540 million yuan for the first three quarters of 2024, representing a year-on-year increase of 19.59%. However, the net profit attributable to shareholders has decreased by 39.22% year-on-year to 62 million yuan [1][3]. - In Q3 2024, the company reported a revenue of 200 million yuan, up 22% year-on-year, but the net profit attributable to shareholders fell by 31.55% year-on-year to 20.2 million yuan [1][3]. - The company is in a phase of business expansion, which has led to increased expenses and pressure on profit margins. R&D expenses rose by 61.6% year-on-year, and sales expenses increased by 36.1% year-on-year [1][3]. Financial Performance Summary - For 2024, the company expects total revenue to reach 787 million yuan, with a year-on-year growth rate of 13.8%. The net profit is projected to be 88 million yuan, reflecting a decline of 34% [3][4]. - The earnings per share (EPS) for 2024 is estimated at 0.88 yuan, with a price-to-earnings (P/E) ratio of 34 [3][4]. - The company anticipates a recovery in net profit to 134 million yuan in 2025, with an EPS of 1.34 yuan, and further growth to 180 million yuan in 2026, with an EPS of 1.80 yuan [3][4].