HXG(603112) 山西证券·2024-11-27 14:23Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][4]. Core Views - The company has shown steady growth in Q3 2024, with revenue reaching 2.787 billion yuan, a year-on-year increase of 18.45%, and a net profit attributable to shareholders of 341 million yuan, up 21.18% year-on-year [2][4]. - The automotive parts business is expected to scale up, supported by a joint venture with Huayu Automotive, which will enhance the company's capabilities in iron casting and machining [2][4]. - The company is focusing on cost reduction and efficiency improvement, aiming to expand market share and achieve stable growth [2][4]. Financial Performance - For Q3 2024, the company reported revenue of 857 million yuan, a 4.75% year-on-year increase, and a net profit of 110 million yuan, up 4.82% year-on-year [2]. - The gross profit margin decreased by 2.55 percentage points to 22.17%, primarily due to the impact of electricity subsidies [2]. - The company’s R&D expense ratio increased to 4.38%, reflecting investments in new projects [2]. Future Outlook - The company is projected to achieve net profits of 470 million yuan, 580 million yuan, and 700 million yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 21.8%, 22.3%, and 18.7% [4]. - Earnings per share (EPS) are expected to be 1.0 yuan, 1.2 yuan, and 1.5 yuan for the same years, with corresponding price-to-earnings (P/E) ratios of 13.1, 10.7, and 9.0 [4].