KBC(688598) 海通证券·2024-11-01 02:50Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company continues to face pressure on profitability, with Q3 2024 revenue at 0.97 billion yuan, down 64% year-on-year and 31% quarter-on-quarter. The net profit attributable to the parent company was -0.43 billion yuan, a year-on-year decline of 248%, but a reduction in losses compared to the previous quarter [5] - The company is actively responding to industry changes in the photovoltaic sector, maintaining its leading position despite a decline in gross margin due to inventory adjustments and reduced operating rates among downstream customers. The company is implementing cost reduction measures and optimizing its customer base to adapt to market changes [5] - The company has successfully developed and mass-produced high-temperature thermal field products for lithium battery anode materials, achieving industry-leading performance levels. The products are currently being validated by several downstream customers [6] - The company is exploring the semiconductor field, providing domestic alternatives for thermal field and insulation materials, with some products already in small-scale delivery [6] Financial Summary - The company is expected to have net profits of 0.29 billion yuan, 1.86 billion yuan, and 2.86 billion yuan for 2024, 2025, and 2026 respectively, reflecting a year-on-year decline of 85.8% in 2024, followed by significant growth in subsequent years [7] - Revenue projections for 2024, 2025, and 2026 are 1.836 billion yuan, 2.295 billion yuan, and 2.937 billion yuan, respectively, indicating a recovery after a 26.1% decline in 2023 [8] - The company's gross margin is projected to be 3.8% in 2024, improving to 11.0% in 2025 and 12.0% in 2026 [10]