Yiheda(301029) 华龙证券·2024-11-01 14:01Investment Rating - The report maintains a "Buy" rating for the company (301029 SZ) [1] Core Views - The company's performance is under pressure, with a decline in profitability In Q3 2024, the company achieved a gross margin of 35 05%, down 0 55pct year-on-year and 1 06pct quarter-on-quarter, while the net margin was 16 85%, up 1 29pct year-on-year but down 1 46pct quarter-on-quarter [1] - The downstream industry structure is continuously optimizing, and performance is expected to bottom out and recover In 2023, the company's revenue from lithium battery, 3C, photovoltaic, automotive, and semiconductor industries accounted for 31 08%, 20 70%, 14 75%, 6 75%, and 4 31% of total revenue, respectively In H1 2024, the proportions changed to 17 14%, 30 04%, 11 51%, 9 32%, and 5 06%, respectively, indicating a shift towards higher-margin 3C and automotive sectors [1] - The company's fundraising projects are gradually being implemented, which is expected to enhance its core competitiveness The company raised 870 million yuan through a private placement to fund projects that will improve its supply chain and production capabilities, supporting future market demand and business growth [1] Financial Performance - In Q3 2024, the company reported revenue of 6 27 billion yuan, down 7 35% year-on-year, and net profit of 1 06 billion yuan, up 0 31% year-on-year [1] - For the first three quarters of 2024, the company achieved revenue of 18 57 billion yuan, down 15 72% year-on-year, and net profit of 3 28 billion yuan, down 27 31% year-on-year [1] - The company's gross margin for the first three quarters of 2024 was 35 44%, down 3 92pct year-on-year, and the net margin was 17 67%, down 2 82pct year-on-year [1] Industry Structure - The company's revenue from lithium battery and photovoltaic industries has decreased, while revenue from 3C, automotive, and semiconductor industries has increased, indicating a shift towards higher-margin sectors [1] - The company's 3C products, particularly mobile phones, have higher gross margins, contributing to the positive growth in net profit ahead of revenue growth in Q3 2024 [1] Future Projections - The report forecasts the company's net profit for 2024-2026 to be 468 million yuan, 493 million yuan, and 544 million yuan, respectively, with corresponding PE ratios of 31 9x, 30 3x, and 27 5x [1] - The company's revenue is expected to decline by 15 05% in 2024, followed by growth of 3 82% in 2025 and 12 62% in 2026 [3] - The company's ROE is projected to be 12 87% in 2024, 12 55% in 2025, and 12 75% in 2026 [3] Valuation - The company's current PE ratio is 31 9x for 2024, 30 3x for 2025, and 27 5x for 2026, compared to the industry average of 28 9x, 22 9x, and 18 6x, respectively [4] - The company's PB ratio is 3 6x for 2024, 3 3x for 2025, and 3 1x for 2026 [6]