LSKJ(SZ:300680) CHINA DRAGON SECURITIES·2024-11-09 09:43Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for the first three quarters of 2024 reached 1.643 billion yuan, a year-on-year increase of 38.47%, with a net profit attributable to the parent company of 154 million yuan, up 58.22% year-on-year [1] - In Q3 2024, the company achieved revenue of 583 million yuan, a year-on-year increase of 28.84%, and a net profit of 50 million yuan, which is a remarkable increase of 100.12% year-on-year [1] - The growth in revenue and profit is primarily driven by the increase in sales of new energy vehicles from downstream customers, with significant sales growth reported by key clients such as BYD, Geely, Chery, and Tesla China [1] - The company has maintained excellent cost control, with a gross margin of 17.90% in Q3 2024, an increase of 1.17 percentage points year-on-year [1] - The company's R&D expenses reached a historical high of 25 million yuan in Q3 2024, indicating a strong commitment to long-term growth [1] Financial Summary - For the first three quarters of 2024, the company reported a net profit of 154 million yuan, with a forecasted net profit of 243 million yuan for 2024, 336 million yuan for 2025, and 410 million yuan for 2026 [2][4] - The company's revenue is projected to grow from 1.827 billion yuan in 2023 to 2.693 billion yuan in 2024, reflecting a growth rate of 47.4% [2][4] - The company's P/E ratio is expected to decrease from 34.1 in 2023 to 20.6 in 2024, indicating a lower valuation compared to peers [2][4] Market Position and Strategy - The company has established strong customer relationships in the EGR and motor core business, benefiting from the growth in new energy vehicle sales [1] - The company is actively expanding into the commercial aerospace sector, having signed a strategic cooperation agreement with Galaxy Aerospace to supply precision components [1] - The company is well-positioned to capitalize on the rapid development of the commercial aerospace industry due to its extensive experience in national aerospace projects [1]