JIN LEI(300443) 长江证券·2024-11-18 02:37Investment Rating - The report maintains a "Buy" rating for Jinlei Co Ltd (300443 SZ) [8] Core Views - Jinlei Co Ltd's Q3 2024 performance showed significant sequential improvement, with revenue increasing by 31 1% QoQ and net profit attributable to shareholders rising by 67 6% QoQ [2][5] - The company's profitability is actively recovering, with Q3 2024 gross margin improving by 5 5pct QoQ and net profit margin increasing by 3pct QoQ [6] - The report expects strong growth in wind power installations in 2025, which will drive demand for large MW castings and forgings, supporting prices and benefiting from cost dilution effects [7] Financial Performance - In Q3 2024, Jinlei Co Ltd achieved revenue of RMB 600 million, up 11 5% YoY and 31 1% QoQ [2][5] - Net profit attributable to shareholders in Q3 2024 was RMB 80 million, down 40 5% YoY but up 67 6% QoQ [2][5] - The company's Q3 2024 gross margin was 24 9%, down 10 6pct YoY but up 5 5pct QoQ [6] - Operating cash flow in Q3 2024 was RMB 110 million, with capital expenditures of RMB 110 million [6] Industry and Market Outlook - The report anticipates a significant increase in wind power installations in 2025, which will drive demand for large MW castings and forgings [7] - Jinlei Co Ltd is actively expanding its overseas customer base, which is expected to contribute to performance elasticity as overseas offshore wind installations increase [7] Valuation and Forecast - The report forecasts Jinlei Co Ltd's net profit attributable to shareholders to be RMB 250 million in 2024 and RMB 500 million in 2025, with corresponding P/E ratios of 31x and 15x respectively [7] - The company's EPS is expected to be RMB 0 77 in 2024 and RMB 1 57 in 2025 [18]