Huarui Precision(688059) 东吴证券·2024-10-31 19:30Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's performance in Q3 2024 has declined due to a sluggish manufacturing sector, with a year-on-year revenue decrease of 24.46% in Q3 [2] - The company's profitability has been under pressure, with a gross profit margin of 39.64% for the first three quarters of 2024, down 4.46 percentage points year-on-year [3] - The company is gradually releasing capacity from its fundraising projects and convertible bond projects, which opens up long-term growth potential in overseas markets [4] - The profit forecast for 2024-2026 has been revised downwards due to slower-than-expected recovery in the manufacturing sector, with net profit estimates adjusted to 1.21 billion, 1.83 billion, and 2.49 billion respectively [5] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 585 million, a year-on-year decrease of 0.52%, and a net profit of 77 million, down 27.06% year-on-year [2] - The gross profit margin for Q3 was 32.68%, reflecting a significant decline compared to the previous year [3] Capacity and Market Expansion - The completion of IPO fundraising projects has alleviated capacity constraints and enhanced product structure, which is expected to meet the rapidly growing market demand [4] - The company has accelerated its overseas market expansion, achieving a 43.11% year-on-year increase in overseas revenue in the first half of 2024 [4] Profit Forecast and Valuation - The revised net profit forecasts for 2024, 2025, and 2026 are 1.21 billion, 1.83 billion, and 2.49 billion respectively, with corresponding P/E ratios of 26, 17, and 12 times [5]