Hongfa(600885) 长江证券·2024-11-18 02:39Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company reported a revenue of 10.87 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 9.97%. The net profit attributable to the parent company was 1.269 billion yuan, up 15.07% year-on-year [5][6]. - In Q3 alone, the company achieved a revenue of 3.638 billion yuan, with a year-on-year increase of 12.19%, and a net profit of 425 million yuan, reflecting a growth of 14.55% [5][6]. - The report highlights that the revenue growth in Q3 is indicative of improving downstream demand, particularly in the power relay segment, which is expected to see accelerated growth due to the recovery in the new energy sector [6][7]. Financial Performance - The gross profit margin for the first three quarters was 35.17%, a slight decrease of 0.42 percentage points year-on-year, while the Q3 gross profit margin was 35.95%, down 0.82 percentage points [6]. - The operating expense ratio for the first three quarters was 18.14%, an increase of 0.86 percentage points year-on-year, with a Q3 expense ratio of 18.74%, which decreased by 0.97 percentage points due to a decline in financial expense ratio [6][7]. - The company's asset-liability ratio at the end of Q3 was 40.7%, an increase of 1.96 percentage points from the previous quarter [7]. Future Outlook - The report anticipates that the company will continue to experience robust growth driven by the recovery of downstream demand and ongoing cost reduction efforts. The projected net profit for 2024 is 1.63 billion yuan, corresponding to a PE ratio of approximately 20.4 times [7][8].