Weichai Power(000338) 国联证券·2024-11-10 04:47Investment Rating - The investment rating for Weichai Power (000338) is "Buy" (maintained) [4] Core Views - In Q3 2024, Weichai Power reported a revenue of 161.95 billion yuan, a year-on-year increase of 1.0%, and a net profit attributable to shareholders of 8.4 billion yuan, a year-on-year increase of 29.2% [2][6] - The company achieved a revenue of 49.46 billion yuan in Q3 2024, a year-on-year decline of 8.8% and a quarter-on-quarter decline of 11.8%, with a net profit of 2.5 billion yuan, a year-on-year decline of 4% and a quarter-on-quarter decline of 24.4% [2][6] - The non-net profit attributable to shareholders was 2.23 billion yuan in Q3, a year-on-year increase of 10% [6] Summary by Sections Financial Performance - For the first three quarters of 2024, Weichai Power's revenue was 1619.5 billion yuan, with a net profit of 84.0 billion yuan [2][6] - In Q3 2024, the company’s gross margin was 22.1%, up 0.3 percentage points year-on-year and 0.7 percentage points quarter-on-quarter [6] - The sales profit margin for Q3 was 7.4%, which is a year-on-year increase of 0.2 percentage points [6] Market Conditions - The heavy truck industry faced pressure with sales of 178,000 units in Q3 2024, a year-on-year decline of 18.2% [6] - Weichai Power outperformed the industry due to its diversified product offerings, particularly benefiting from non-road applications and large-bore engines [6] Future Outlook - The company anticipates a recovery in the industry supported by policy incentives such as trade-in programs [6] - The revenue targets for 2024-2026 are set at 210.2 billion, 231.2 billion, and 258.9 billion yuan, with corresponding net profit targets of 11.23 billion, 13.91 billion, and 15.61 billion yuan [6] - The company aims to achieve a sales profit margin of 8% in 2024, with a projected compound annual growth rate (CAGR) of 20.1% over the next three years [6]