Kunshan Dongwei Technology (688700)2024-10-29 17:30Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's performance has declined, likely due to the delayed industrialization of composite fluid technology, leading to lower-than-expected demand for equipment in the new energy sector [2] - The gross margin has decreased, indicating a decline in profitability, with a gross margin of 38.75% for the first three quarters of 2024, down 5.80 percentage points year-on-year [3] - Inventory and contract liabilities have increased, with inventory at 527 million yuan, up 32.82% year-on-year, and contract liabilities at 252 million yuan, up 23.04% year-on-year [3] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 580 million yuan, a year-on-year decrease of 20.68%, and a net profit attributable to shareholders of 68 million yuan, down 54.12% year-on-year [2] - The company's revenue for Q3 alone was 188 million yuan, a year-on-year decrease of 19.14%, with a net profit of 12.72 million yuan, down 72.85% year-on-year [2] - The company expects net profits for 2024-2026 to be 1.6 billion yuan (down 43%), 2.5 billion yuan (down 38%), and 3.2 billion yuan (down 40%), corresponding to P/E ratios of 37, 24, and 19 times respectively [4] Growth Opportunities - The company has achieved mass production of composite copper foil equipment and is actively developing composite aluminum equipment, with the aluminum vapor deposition equipment already completed [4] - The third-generation photovoltaic copper plating equipment has overcome capacity limitations, producing 8,000 pieces per hour, and has begun mass production at customer sites [4] - The company is also developing a large-width double-sided transmission roll-type contactless coating line to improve the utilization rate of composite fluid materials for lithium batteries [4]