Recodeal(SH:688800) CHINA DRAGON SECURITIES·2024-11-09 08:36Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The rapid growth of new energy connectors is significantly improving cash flow, with a revenue increase of 52.75% year-on-year to 1.589 billion yuan in the first three quarters of 2024 [1] - The company's net profit attributable to shareholders reached 106 million yuan, a year-on-year increase of 10.6% [1] - The third quarter saw a revenue of 631 million yuan, up 60.9% year-on-year, and a net profit of 40.67 million yuan, reflecting strong performance driven by the increasing penetration of new energy vehicles [1] Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved a revenue of 1.589 billion yuan, a 52.75% increase year-on-year, and a net profit of 106 million yuan, up 10.6% [1] - The third quarter alone saw revenues of 631 million yuan, marking a 60.9% year-on-year growth, with net profit attributable to shareholders at 40.67 million yuan, a 40.67% increase [1] Market Data - As of October 24, 2024, the company's stock price is 43.01 yuan, with a 52-week price range of 19.20 to 50.00 yuan and a total market capitalization of 6.81364 billion yuan [1] - The company’s revenue growth outpaced the growth in new energy vehicle production and sales, which increased by 30.1% and 32% year-on-year in the first half of 2024 [1] Cash Flow and Profitability - The company reported a significant improvement in operating cash flow, with a net cash flow of 167 million yuan in the first three quarters, a year-on-year increase of 179.79% [1] - The company has effectively controlled costs and improved profitability, leading to a notable enhancement in profit margins compared to the first half of the year [1] Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 154 million yuan, 184 million yuan, and 218 million yuan respectively, with corresponding EPS of 0.97 yuan, 1.16 yuan, and 1.37 yuan [1][2] - The projected P/E ratios for the same period are 44.2x, 37.1x, and 31.3x, indicating a reasonable valuation despite potential overvaluation concerns [1][2]