CHIC(601608) Zhongyuan Securities·2024-11-11 23:33Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [1][12]. Core Insights - The company's non-net profit showed steady growth, with overseas orders for mining machinery reaching a record high [1]. - The company experienced a 15.87% year-on-year decline in revenue for the first three quarters of 2024, primarily due to a slowdown in its new energy segment [1]. - The adjusted net profit for the same period was 228 million yuan, reflecting a year-on-year increase of 35.32%, attributed to product optimization and efficiency improvements [1][2]. - The company is actively expanding its overseas market presence, aiming to become a global leader in mining machinery [1][2]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 5.877 billion yuan, down 15.87% year-on-year, while the net profit attributable to shareholders was 284 million yuan, up 6.72% [1][4]. - The company’s gross margin improved to 21.26%, driven by product upgrades and operational efficiency [1][6]. - The forecast for 2024-2026 indicates a decline in revenue, with projections of 9.094 billion yuan, 10.023 billion yuan, and 11.219 billion yuan respectively, alongside net profit estimates of 436 million yuan, 557 million yuan, and 661 million yuan [3][4][8]. Market Strategy and Outlook - The company is focusing on the large-scale mining mill wear plate business, establishing a unique database for wear plates and enhancing its service offerings [2]. - The company aims to leverage the "Belt and Road" initiative to expand its international market share and strengthen partnerships with Chinese enterprises [1][2]. - The report highlights the significant market potential for after-market services, particularly in wear parts, which are expected to grow alongside the main equipment market [2].