Zhejiang Jingsheng Mechanical & Electrical (300316) 长江证券·2024-10-29 03:12Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 14.478 billion yuan for the first three quarters of 2024, a year-on-year increase of 7.55%. However, the net profit attributable to the parent company was 2.96 billion yuan, a year-on-year decrease of 15.76%. In Q3 2024, revenue was 4.331 billion yuan, down 14.34% year-on-year and 23.18% quarter-on-quarter, with a net profit of 864 million yuan, down 33.96% year-on-year and 15.88% quarter-on-quarter [2][3] - The industry downturn has pressured the company's performance, with intensified competition in the photovoltaic sector and adverse international trade impacts leading to a decline in product prices and profitability across the supply chain [3] - The gross margin for Q3 2024 was 32.24%, a slight increase of 0.46 percentage points quarter-on-quarter, supported by changes in the product mix despite a decline in the crucible business margin [3] - The company is accelerating its platform-based layout to navigate through the industry cycle, focusing on advanced materials and equipment, enhancing R&D innovation, and expanding market reach [3][4] Financial Summary - The company expects to achieve a net profit of 4.04 billion yuan and 4.42 billion yuan for 2024 and 2025, respectively, corresponding to PE ratios of 12 and 11 times [5] - As of Q3 2024, the company's contract liabilities stood at 6.585 billion yuan, indicating pressure on new order signings [3] - The company has made significant progress in the semiconductor equipment sector, capitalizing on domestic substitution trends and expanding its product offerings [4]