XZB(603040) 财信证券·2024-11-01 02:32Investment Rating - The investment rating for the company is "Buy" [1][11]. Core Views - The company has shown strong revenue growth, with a 17.57% year-on-year increase in revenue for the first three quarters of 2024, reaching 497 million yuan, and a net profit of 162 million yuan, up 19.92% year-on-year [4][5]. - The overseas business is expected to continue driving rapid growth, with overseas revenue in the first half of 2024 reaching 153 million yuan, a 35.49% increase year-on-year, accounting for 46.72% of total revenue [5][6]. - The company is effectively managing costs, with a gross margin of 52.45% and a net margin of 33.85% for the first three quarters of 2024 [6][7]. - The company is expanding its application of precision cold forging technology into various sectors, including automotive and aerospace, which is expected to enhance its profitability [7][8]. Summary by Sections Financial Performance - The company achieved a revenue of 1.68 billion yuan in Q3 2024, reflecting a 12.47% year-on-year increase, while net profit for the same period was 50 million yuan, up 22.56% year-on-year [4][5]. - Forecasted revenue for 2024 is 701.74 million yuan, with a projected net profit of 210.07 million yuan, indicating a year-on-year growth rate of 12.79% [9][8]. Cost Management - The company has successfully reduced sales expenses, with a sales expense ratio of 0.03% in Q3 2024, down 1.63 percentage points year-on-year [6][7]. - The gross margin for Q3 2024 was 52.33%, showing a slight improvement from the previous year [6][7]. Market Position and Growth Potential - The company is positioned as a hidden champion in the precision cold forging sector, with ongoing expansion into the new energy vehicle market [5][8]. - The projected earnings per share (EPS) for 2024 is 1.52 yuan, with a price-to-earnings (P/E) ratio of 15.31, indicating a favorable valuation compared to industry peers [9][8].