Valiant(SZ:002643) Tianfeng Securities·2024-11-20 00:17Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [6][16]. Core Insights - The company reported a revenue decline of 13.0% year-on-year for the first three quarters of 2024, totaling 2.763 billion yuan, and a net profit decline of 48.6%, amounting to 296 million yuan [1][4]. - The increase in expenses, particularly in research and development, has significantly impacted the net profit margins, with a net profit margin of 14.23%, down 6.18 percentage points year-on-year [1][2]. - A partnership with BOE Technology Group to establish a new materials company is expected to enhance the company's competitive position in the industry [4]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 806 million yuan, down 26.8% year-on-year and 20.8% quarter-on-quarter, with a net profit of approximately 81 million yuan, reflecting a 56.6% decline year-on-year [1][4]. - The gross margin for the first three quarters of 2024 was 40.08%, a decrease of 2.17 percentage points compared to the same period in 2023, while the Q3 gross margin was 39.67%, down 4.40 percentage points year-on-year [1][2]. - The company's four expense ratios increased to 24.47% for the first three quarters of 2024, up 5.18 percentage points year-on-year, with R&D expenses notably rising by 450.76 million yuan [2][4]. Industry Context - The display industry continues to show strong growth, with global AMOLED smartphone shipments increasing by 25.3% year-on-year in Q3 2024 [3]. - However, the domestic diesel heavy truck market has seen a significant decline, with Q3 2024 sales dropping by 18.2% year-on-year and 23% quarter-on-quarter, which is expected to adversely affect the company's revenue from its zeolite business [3][4].