HMT(603306) 光大证券·2024-11-07 14:22Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company reported a revenue of 1.54 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 5.64%, and a net profit attributable to shareholders of 196 million yuan, up 32.00% year-on-year [1]. - The growth in revenue and net profit is attributed to the stable growth of the automotive passive safety business, improved gross margins, reduced management expenses, and increased investment income from asset sales [2]. - The company has a strong focus on high-end, domestic, and new energy product strategies, with significant growth in its Vietnam subsidiary, which achieved sales of approximately 121 million yuan, a year-on-year increase of 42% [2]. - The employee stock ownership plan, with a total funding cap of 153 million yuan, reflects the company's long-term confidence in its development [3]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 571 million yuan, a year-on-year increase of 0.94% and a quarter-on-quarter increase of 14.31%. The net profit for Q3 was 64 million yuan, down 10.87% year-on-year and down 18.64% quarter-on-quarter [1]. - The gross margin for Q3 was 30.21%, a decrease of 2.30 percentage points year-on-year but an increase of 1.19 percentage points quarter-on-quarter [1]. Business Growth - The automotive passive safety business continues to grow steadily, with the company focusing on high-end, domestic, and new energy directions. As of H1 2024, the company has secured 66 new projects for airbag bags [2]. - The Vietnam subsidiary has shown robust growth, with 39 projects certified for mass production and one project awaiting mass production approval, contributing significantly to overall sales [2]. Profit Forecast and Valuation - The profit forecasts for 2024 and 2025 have been adjusted downwards to 300 million yuan and 342 million yuan, respectively, reflecting a decrease of 4.15% and 12.53%. A new forecast for 2026 is set at 407 million yuan [3]. - The current price-to-earnings (P/E) ratios are projected at 32X for 2024, 28X for 2025, and 23X for 2026, indicating a favorable outlook for the company's automotive passive safety business growth potential [3].