FARATRONIC(600563) Xiangcai Securities·2024-11-19 08:06Investment Rating - The report maintains a "Buy" rating for Faratronic [17][19]. Core Insights - In Q3 2024, Faratronic achieved a record high revenue of 1.322 billion yuan, representing a year-on-year growth of 46.92%, and a net profit of 293 million yuan, up 31.04% year-on-year [14][15]. - The rapid growth in the photovoltaic and new energy vehicle markets has significantly driven Faratronic's revenue to new heights [15]. - The establishment of a wholly-owned subsidiary in Hungary is part of the company's internationalization strategy, aimed at enhancing competitiveness and market collaboration [16]. Financial Performance Summary - For Q3 2024, the company reported a gross margin of 34.16%, a decrease of 4.35 percentage points year-on-year [14]. - For the first three quarters of 2024, total revenue reached 3.439 billion yuan, a year-on-year increase of 19.77%, with a net profit of 775 million yuan, up 8.43% year-on-year [14]. - The company expects net profits for 2024-2026 to be 1.163 billion, 1.460 billion, and 1.854 billion yuan, with growth rates of 13.6%, 25.5%, and 27.0% respectively [17]. Market Position and Strategy - Faratronic is positioned in the first tier internationally, benefiting from cost advantages through automation and integration [17]. - The company’s revenue composition includes approximately 52% from new energy vehicle-related businesses and 24% from photovoltaic-related businesses [15].