FARATRONIC(600563) EBSCN·2024-11-08 06:28Investment Rating - The report maintains a "Buy" rating for the company [3][7]. Core Views - The company achieved a record high revenue of 1.322 billion yuan in Q3 2024, representing a year-on-year increase of 46.92% and a quarter-on-quarter increase of 16.26%. The net profit attributable to shareholders was 293 million yuan, up 31.04% year-on-year and 9.93% quarter-on-quarter [1]. - The company is a leader in the film capacitor industry, with a comprehensive product range that meets the needs of various sectors including industrial control, photovoltaics, energy storage, wind power, new energy vehicles, rail transit, smart grids, home appliances, and lighting [1][2]. - The market for film capacitors is expected to shift from production line expansion to enhanced technical services and brand development, with a growing proportion of high-end products [2]. Summary by Sections Financial Performance - In the first three quarters of 2023, the company reported a revenue of 3.439 billion yuan, a year-on-year increase of 19.77%. The net profit attributable to shareholders was 775 million yuan, up 8.43% year-on-year [4]. - The gross margin was 34.11%, down 4.58 percentage points year-on-year, while the net margin was 22.54%, down 2.45 percentage points year-on-year [4]. Market Trends - The demand for new energy vehicles remains strong, with October 2023 seeing a wholesale sales volume of 1.4 million units, a year-on-year increase of 58% [2]. - The company’s revenue from new energy vehicles accounted for approximately 52% of its total revenue in the first half of 2024 [1]. Profit Forecast and Valuation - The net profit forecasts for 2024 and 2025 have been adjusted to 1.137 billion yuan and 1.390 billion yuan, respectively, reflecting downward revisions of 13.6% and 14.7% [3]. - The projected price-to-earnings ratios for 2024-2026 are 26X, 22X, and 18X, respectively, indicating a favorable growth outlook given the company's leadership position in the film capacitor market [3].