Investment Rating - No rating provided for the company [1] Core Views - Downstream demand weakness has dragged down revenue growth, but Q3 gross margin improved sequentially [2] - The company specializes in R&D, production, and sales of synthetic diamond single crystal powder, extended application products, and CVD diamond materials [2] - Revenue declined significantly due to macroeconomic impacts and falling raw material prices, which lowered product selling prices [2] - Q3 gross margin was 24.8%, up 6.4 percentage points sequentially and 3.0 percentage points year-over-year, driven by increased raw material reserves at lower costs [2] Financial Performance - 2024 Q3 revenue was RMB 162 million, down 57.24% year-over-year [8] - Net profit attributable to shareholders was RMB 6.99 million, down 85.98% year-over-year [8] - Non-GAAP net profit was RMB 1.13 million, down 97.41% year-over-year [8] - Gross margin improved sequentially in Q3, reflecting better cost management [2] Industry and Product Outlook - Diamond powder remains a strategic emerging material with high hardness, excellent thermal conductivity, biocompatibility, and corrosion resistance [6] - Applications span new energy, semiconductors, aerospace, military, automotive, and precision manufacturing [6] - Demand for diamond powder and related products is expected to grow as manufacturing upgrades progress [6] Financial Metrics - 2022 revenue was RMB 14.22 billion, up 97% year-over-year [7] - 2022 net profit attributable to shareholders was RMB 740 million, up 31% year-over-year [7] - Gross margin declined from 43.0% in 2020 to 27.3% in 2023 [7] - ROE dropped from 24.9% in 2020 to 11.4% in 2023 [7] Operational Highlights - Sales expenses increased by 3.6% to RMB 4.43 million [9] - Management expenses decreased by 2.8% to RMB 13.78 million [9] - R&D expenses dropped by 38.6% to RMB 15.94 million due to reduced material inputs and completed CVD projects [9]
惠丰钻石：行业景气度低迷，毛利率环比好转