SOLEX(SH:603992) Tianfeng Securities·2024-11-09 11:08Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [4][6]. Core Insights - The company reported a revenue of 740 million in Q3 2024, a decrease of 7% year-on-year, and a net profit attributable to the parent company of 100 million, down 46% year-on-year [1]. - The company is currently constructing a factory in Vietnam, expected to commence production in the second half of next year, with a total investment of 350 million RMB [2]. - The company's Integrated Design and Manufacturing (IDM) model is an upgrade from the traditional Original Design Manufacturer (ODM) model, focusing on high-value-added products and ensuring competitive advantages [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 2.2 billion, a slight decrease of 0.09% year-on-year, while the net profit attributable to the parent company increased by 5.5% to 320 million [1]. - The gross margin for the first three quarters of 2024 was 35.39%, an increase of 0.32 percentage points, while the net profit margin was 14.63%, a decrease of 0.62 percentage points [1]. - The company adjusted its earnings per share (EPS) forecast for 2024-2026 to 1.0, 1.1, and 1.3 RMB, respectively, with corresponding price-to-earnings (PE) ratios of 22X, 19X, and 16X [4]. Financial Data and Valuation - The company's projected revenue for 2024 is 3.08 billion, with a growth rate of 3.1%, and a net profit of 397 million, reflecting a growth rate of 12.62% [5]. - The company’s total assets are projected to reach 5.3 billion by 2024, with a debt ratio of 34.38% [8]. - The company’s net profit for 2023 is estimated at 391 million, with an EPS of 0.85 RMB [9].