ConST(300445)2024-10-24 11:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 16.85 CNY [1] Core Views - The company has shown steady growth in performance despite domestic pressures, with international market expansion contributing positively [1] - For the first three quarters of 2024, the company achieved revenue of 358 million CNY, a year-on-year increase of 8.07%, with international market revenue growing by 23% while domestic market revenue declined by 3.4% [1] - The net profit attributable to the parent company reached 89 million CNY, reflecting a year-on-year increase of 27.45% [1] - The gross margin and net margin for the first three quarters were 64.67% and 24.66%, respectively, showing improvements compared to the previous year [1] Financial Summary - Revenue is projected to grow from 498.29 million CNY in 2023 to 814.94 million CNY by 2026, with a compound annual growth rate (CAGR) of 21.75% [2][4] - The net profit attributable to the parent company is expected to increase from 101.91 million CNY in 2023 to 201.15 million CNY in 2026, with a CAGR of 27.22% [2][4] - The company's earnings per share (EPS) is forecasted to rise from 0.48 CNY in 2023 to 0.95 CNY in 2026 [2][4] Profitability and Efficiency - The company has demonstrated strong cost control, with a decrease in the expense ratio by 3.5 percentage points year-on-year [1] - Operating cash flow for the first three quarters was 103 million CNY, a significant increase of 259.2% year-on-year, driven by improved sales orders and collection of receivables [1] - The company is focusing on optimizing its product ecosystem and enhancing efficiency, particularly in the development of new intelligent products [1] Market Position and Strategy - The company is experiencing balanced growth across major regions including the Americas, Europe, the Middle East, Africa, and Asia-Pacific [1] - It is enhancing its digital platform and calibration testing product synergy while accelerating the implementation of new orders [1] - The company is also improving its resource allocation and R&D efficiency, which is expected to contribute to future growth [1]