Etron(603380) 华鑫证券·2024-12-13 06:15Investment Rating - Buy (First Coverage) [1] Core Views - The company's revenue has shown stable growth, with cost control and efficiency improvements boosting profits In the first three quarters of 2024, the company achieved revenue of 1 552 billion yuan, a year-on-year increase of 13 87%, with Q3 revenue reaching 539 million yuan, up 5 89% year-on-year Net profit attributable to the parent company was 51 million yuan, a 39 49% increase year-on-year [1] - The company is deeply rooted in the industrial control sector, and the recovery of the power tool industry is driving a new wave of growth The global power tool market size is expected to grow from 28 52 billion USD in 2024 to 40 2 billion USD by 2032, with a CAGR of 4 4% The company's industrial control business accounts for over 40% of its total business, and it has established long-term partnerships with leading clients in related industries [1] - The company's manufacturing equipment and process technology are dual advantages, showcasing its core competitiveness as an EMS company It possesses advanced manufacturing equipment and process technologies, such as Panasonic NPM high-speed mounting equipment, Siemens high-speed mounting equipment, BTU reflow soldering equipment, and ERSA nitrogen-filled wave soldering equipment [1] Financial Forecasts - Revenue is projected to be 2 207 billion yuan, 2 561 billion yuan, and 2 826 billion yuan for 2024, 2025, and 2026, respectively EPS is forecasted to be 1 11 yuan, 1 39 yuan, and 1 64 yuan for the same periods, with corresponding P/E ratios of 22x, 18x, and 15x [4] - Net profit attributable to the parent company is expected to grow by 34 1%, 24 4%, and 18 5% in 2024, 2025, and 2026, respectively [6] - ROE is projected to increase from 9 8% in 2023 to 14 0% in 2026 [6] Industry Analysis - The power tool industry is recovering, with downstream inventory reduction showing results and demand rebounding The company's products are expected to benefit from this recovery, further enhancing its market share and industry position [1] - The company's industrial control business is well-positioned to capitalize on the growth in the power tool and new energy sectors, particularly in applications such as professional power tools and high-power inverters for new energy [1] Manufacturing and Technology - The company has a significant technological advantage in manufacturing equipment and process technology, which is a core competency for EMS companies It has a wide range of advanced equipment and processes, including high-precision mounting and soldering technologies, which enable it to handle small components with high accuracy [1]