Daimay(603730) 华泰证券·2024-11-01 08:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 11.70 [6][4]. Core Views - The company reported Q3 revenue of RMB 1.519 billion, a year-over-year decrease of 0.71% and a quarter-over-quarter decrease of 10.45%, primarily due to weak overseas demand [1][2]. - The company achieved a net profit of RMB 203 million in Q3, reflecting a year-over-year increase of 1.25% and a quarter-over-quarter decrease of 9.83% [1]. - The report highlights the company's expansion into roof systems and other interior products, which is expected to enhance the per-vehicle value and create a secondary growth curve [1][2]. Summary by Sections Q3 Performance - Q3 revenue was RMB 1.519 billion, down 0.71% year-over-year and down 10.45% quarter-over-quarter, impacted by weak overseas demand [1]. - For the first three quarters of 2024, revenue reached RMB 4.804 billion, up 8.96% year-over-year, with a net profit of RMB 623 million, up 15.56% year-over-year [1]. Profitability and Cost Management - The gross margin in Q3 improved by 0.66 percentage points year-over-year and 0.71 percentage points quarter-over-quarter to 28.83%, attributed to a higher proportion of high-value-added products and structural optimization [3]. - The net profit margin also stabilized, increasing by 0.26 and 0.09 percentage points to 13.36% [3]. - The company has effectively controlled sales, management, and R&D expenses, with respective rates of 1.77%, 5.63%, and 3.89%, showing a decrease compared to the previous year [3]. Earnings Forecast and Valuation - The report maintains previous profit forecasts, estimating net profits of RMB 889 million, RMB 1.074 billion, and RMB 1.273 billion for 2024, 2025, and 2026, respectively [4]. - The target price is set at RMB 11.70, based on a 2025 PE ratio of 18 times, down from a previous value of RMB 13.99 [4].