Arctech Solar(688408) 太平洋·2024-10-31 10:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [9]. Core Views - The company achieved record high revenue and profit in Q3 2024, with total revenue reaching 5.982 billion yuan, a year-on-year increase of 76.30%, and net profit attributable to shareholders at 427 million yuan, up 171.48% year-on-year [2][3]. - The company has a robust order backlog of approximately 5.99 billion yuan, indicating strong demand and growth potential in the photovoltaic support structure market [3]. - The company is experiencing significant growth in its tracking support business, leading to an increase in gross margin to 19.37% for the first three quarters of 2024, up 2.84 percentage points year-on-year [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 5.982 billion yuan, with a net profit of 427 million yuan, and a non-recurring net profit of 409 million yuan, reflecting substantial growth rates of 76.30%, 171.48%, and 217.63% respectively [2][3]. - In Q3 2024 alone, revenue was 2.606 billion yuan, a year-on-year increase of 77.05% and a quarter-on-quarter increase of 66.82% [2][3]. Order Backlog and Market Position - The company has a strong order backlog of approximately 5.99 billion yuan, with tracking supports accounting for about 5.21 billion yuan and fixed supports for about 752 million yuan [3]. - The company is positioned as a leader in the photovoltaic support structure market, benefiting from high demand and a favorable competitive landscape [3]. Profitability and Cost Management - The net profit margin for the first three quarters of 2024 was 7.14%, an increase of 2.50 percentage points year-on-year, with Q3 net profit margin reaching 7.52%, up 3.49 percentage points year-on-year [3]. - The company has effectively managed its sales, administrative, and financial expenses, resulting in a combined expense ratio of 6.63% for the first three quarters of 2024, down 0.39 percentage points year-on-year [3]. Future Projections - The report maintains profit forecasts for 2024-2026, expecting net profits of 769 million yuan, 948 million yuan, and 1.164 billion yuan respectively [3][4].