KSHG(605333) 上海证券·2024-10-30 03:01Investment Rating - The investment rating for the company is "Buy" (maintained) [6][15]. Core Views - The company reported a significant increase in revenue and net profit for the first three quarters of 2024, with revenue reaching 5.532 billion yuan, up 133.71% year-on-year, and net profit attributable to shareholders at 438 million yuan, up 2030.18% year-on-year [6][7]. - The third quarter of 2024 saw a record high in revenue, driven by government subsidies for vehicle scrappage and the launch of new models by car manufacturers, leading to a recovery in the passenger car market and steady growth in demand for automotive wiring harnesses [7]. - The company's gross profit margin improved to 20.50% in Q3 2024, an increase of 7.81 percentage points year-on-year, while the net profit margin reached 8.68%, up 6.76 percentage points year-on-year [7]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 2.114 billion yuan, a year-on-year increase of 121.40% [7]. - The net profit for Q3 2024 was 183 million yuan, reflecting a year-on-year increase of 901.75% [7]. - The company expects revenues of 7.903 billion yuan, 9.896 billion yuan, and 11.836 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 97.44%, 25.22%, and 19.61% [8]. Market Position and Strategy - The company is actively expanding its customer base and improving its product mix, particularly in the new energy vehicle market, where the revenue share from new energy vehicle wiring harnesses increased from 37.41% in 2021 to 81.16% in Q1 2024 [7]. - The company has secured high-voltage wiring harness orders expected to reach 2.0464 million sets, 2.4379 million sets, and 2.6430 million sets for the years 2024 to 2026 [7]. Valuation Metrics - As of October 28, 2024, the price-to-earnings (P/E) ratios are projected to be 20.49X for 2024, 15.76X for 2025, and 13.05X for 2026 [8]. - The earnings per share (EPS) is expected to rise from 0.12 yuan in 2023 to 1.48 yuan in 2024, 1.93 yuan in 2025, and 2.33 yuan in 2026 [8].