WEIXING(SZ:002003)2024-11-14 09:42Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 14.85 for 2024, based on a 25X PE valuation [3][12]. Core Insights - The company reported a revenue growth of 19% in Q3, with a recurring net profit after tax (NPAtS) increase of 2.6%. For the first three quarters, revenue reached RMB 3.58 billion, up 23.3% YoY, and net profit attributable to shareholders was RMB 624 million, up 17.2% YoY [8][12]. - The gross profit margin (GPM) improved for six consecutive quarters, reaching 42.70% for the first three quarters and 44.32% in Q3, the highest since 2017. This improvement is attributed to the company's digital intelligence upgrades and cost reduction strategies [9][11]. - The company is focusing on globalization, with fixed assets increasing by 31% year-to-date, supporting its international strategy, particularly in Vietnam and Bangladesh [11]. Financial Performance Summary - For Q3, the company achieved revenue of RMB 1.28 billion, a 19.3% increase YoY, while NPAtS was RMB 208 million, down 9.9% YoY. The recurring NPAtS for Q3 was RMB 208 million, reflecting a 2.6% increase YoY [8][12]. - The first three quarters showed a gross margin of 42.70%, with total expenses increasing by 1.37 percentage points. The NPAtS margin was 17.4%, down 0.91 percentage points YoY [8][12]. - The company expects revenue for 2024-2026 to be RMB 4.69 billion, RMB 5.52 billion, and RMB 6.53 billion, respectively, with net profit projections of RMB 694 million, RMB 825 million, and RMB 993 million [4][12].