HAILIANG(002203) 国金证券·2024-10-31 06:57Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The company reported a total revenue of 681.21 billion RMB for the first three quarters of 2024, a year-on-year decrease of 1.94%, with a net profit attributable to shareholders of 8.79 billion RMB, down 9.39% year-on-year [2]. - The company's product sales improved year-on-year, with a significant increase in copper foil sales, which rose by 366.24% year-on-year [2]. - The company is expanding its overseas projects in Indonesia and Morocco, which are expected to enhance profitability [2]. - The financial expenses increased significantly due to exchange losses from the appreciation of the RMB against the USD, impacting short-term profit performance [2]. Summary by Relevant Sections Financial Performance - For Q3 2024, the company achieved a revenue of 240.88 billion RMB, an increase of 8.60% quarter-on-quarter, but the gross profit decreased by 37.16% to 4.77 billion RMB [2]. - The company expects revenues of 935 billion RMB, 1,109 billion RMB, and 1,198 billion RMB for 2024, 2025, and 2026 respectively, with net profits projected at 12.13 billion RMB, 16.63 billion RMB, and 20.50 billion RMB for the same years [2][4]. Business Expansion - The company is constructing a new materials technology industrial park in Morocco, which will include multiple production lines for copper and lithium battery materials [2]. - In Indonesia, the company is developing a high-performance electrolytic copper foil project, which is expected to complement its domestic operations and expand its global market presence [2]. Market Position - The company’s overseas copper processing business has a higher gross margin compared to domestic operations, indicating a strategic advantage as international projects progress [2].