Huarui Precision(SH:688059)2024-11-10 06:34Investment Rating - The investment rating for the company is "Buy" (maintained) [5]. Core Views - The company reported a decline in revenue and net profit for Q3 2024, with revenue of 1.74 billion yuan, down 24.46% year-on-year and 27.52% quarter-on-quarter. The net profit for the same period was 0.05 billion yuan, down 88.17% year-on-year and 90.65% quarter-on-quarter [5][6]. - The weak downstream demand and high inventory levels from Q2 have negatively impacted sales and revenue. The recovery in domestic demand has been slower than expected, affecting the operating rates across various industries [6]. - The company has adjusted its profit forecasts downward due to the slow recovery in domestic demand, projecting net profits of 1.21 billion yuan, 1.81 billion yuan, and 2.57 billion yuan for 2024-2026 [6][7]. Summary by Sections Market Data - Closing price as of November 7, 2024, is 50.90 yuan, with a one-year high of 104.60 yuan and a low of 38.40 yuan. The market capitalization is 3,148 million yuan [2]. Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 5.85 billion yuan, a decrease of 0.52% year-on-year. The gross profit margin for the same period was 39.64%, down 4.46 percentage points year-on-year [5][6]. - The company’s net profit margin for Q3 2024 was 2.94%, down 15.84 percentage points year-on-year [6]. Future Projections - The company expects revenue growth rates of 4.8%, 24.0%, and 21.4% for 2024, 2025, and 2026, respectively. The projected net profit for 2024 is 121 million yuan, with a year-on-year decline of 23.6% [7][9]. - The company aims to expand its sales scale through a combination of direct sales and distribution, both domestically and internationally, to enhance its market presence [6].