Ellington(SH:603328) Tai Ping Yang·2024-11-17 12:36Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [11]. Core Insights - The company's Q3 2024 report shows continued improvement, with a revenue of 2.62 billion yuan, a year-on-year increase of 8.65%, and a net profit attributable to shareholders of 366 million yuan, up 22.70% year-on-year [3]. - The company has successfully expanded its customer base, particularly in the automotive PCB sector, leveraging over 20 years of experience in automotive electronics [3]. - The gross margin for Q3 2024 is reported at 24.52%, an increase of 2.17 percentage points year-on-year, reflecting improved profitability [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.62 billion yuan, with a net profit of 366 million yuan, and a net profit excluding non-recurring items of 355 million yuan [3]. - The Q3 2024 revenue was 867 million yuan, a 6.88% increase year-on-year, while the net profit for the same period was 106 million yuan, a decrease of 6.99% year-on-year [3]. - The company forecasts total revenues of 3.66 billion, 4.26 billion, and 5.18 billion yuan for 2024, 2025, and 2026, respectively, with corresponding year-on-year growth rates of 15.20%, 16.34%, and 21.55% [4]. Profitability and Cost Structure - The report indicates a continuous optimization of product structure, with a focus on enhancing profitability [3]. - The company’s expense ratios for sales, management, R&D, and financial costs are reported as 2.11%, 2.73%, 4.17%, and -0.16%, respectively, with notable changes year-on-year [3]. - The report highlights advancements in technology capabilities, including 60Z thick copper technology and HDI processes, which are expected to support future growth [3].