Azure(002245) 兴业证券·2024-11-24 01:11Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 9.96 yuan as of November 18, 2024 [1][2] Core Views - The company's lithium battery business faced pressure in 2023, but new business segments are expected to drive performance improvement [1] - The company's 2024 Q3 results met expectations, with revenue and gross margin showing continuous recovery [7] - The company's LED and metal businesses contributed positively to Q3 performance, with LED business generating 48 million yuan in net profit [4] - The lithium battery business saw a decline in Q3 net profit due to increased R&D expenses, which reached 85 million yuan [4] Financial Performance - The company's 2024 Q3 revenue reached 1.77 billion yuan, up 22.7% YoY and 8.4% QoQ [6] - Net profit attributable to shareholders in Q3 was 115 million yuan, up 86.2% YoY and 18.5% QoQ [6] - Gross margin in Q3 was 18.9%, up 7.4 percentage points YoY and 3.3 percentage points QoQ [6] - The company's 2024 Q3 R&D expense ratio was 7.5%, up 1.7 percentage points YoY [6] Business Segments - In 2024 Q3, the LED business revenue was approximately 450 million yuan, with a gross margin of 22.5% [4] - The lithium battery business revenue in Q3 was approximately 665 million yuan, with a gross margin of 19.76% [4] - The metal business revenue in Q3 was approximately 620 million yuan [4] Future Projections - The report forecasts the company's net profit attributable to shareholders to reach 434 million yuan in 2024, 590 million yuan in 2025, and 689 million yuan in 2026 [7] - The company's EPS is expected to be 0.38 yuan in 2024, 0.51 yuan in 2025, and 0.60 yuan in 2026 [7] - The company's ROE is projected to increase from 6.3% in 2024 to 8.6% in 2026 [9] Valuation - As of November 18, 2024, the company's PE ratio is 26.5x for 2024, 19.5x for 2025, and 16.7x for 2026 [7] - The company's PB ratio is 1.8x for 2023, 1.7x for 2024, 1.5x for 2025, and 1.4x for 2026 [9]