KSHG(605333) 西南证券·2024-11-01 14:14Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Insights - The company reported Q3 earnings that exceeded expectations, with a revenue of 5.532 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 134%. The net profit attributable to shareholders reached 438 million yuan, up 2030% year-on-year, and the gross margin improved to 17.3%, an increase of 5.5 percentage points [1]. - In Q3 2024, the company achieved a revenue of 2.114 billion yuan, a year-on-year increase of 121% and a quarter-on-quarter increase of 12.1%. The net profit attributable to shareholders was 183 million yuan, reflecting a year-on-year increase of 902% and a quarter-on-quarter increase of 18.9% [1]. - The company's profitability continues to recover, with a Q3 gross margin of 20.5%, up 7.8 percentage points year-on-year and 4 percentage points quarter-on-quarter. The net margin was 8.7%, an increase of 6.8 percentage points year-on-year and 0.5 percentage points quarter-on-quarter [1]. - The company is focusing on the production of high-voltage wiring harnesses for electric vehicles, which have a higher unit value compared to traditional fuel vehicles, indicating significant growth potential in the domestic market [2]. - The company is expected to achieve a compound annual growth rate (CAGR) of 167% in net profit from 2024 to 2026, with projected earnings per share (EPS) of 1.43, 1.83, and 2.35 yuan for the years 2024, 2025, and 2026, respectively [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 5.532 billion yuan, with a net profit of 438 million yuan, marking significant growth compared to the previous year [1]. - The Q3 revenue was 2.114 billion yuan, with a net profit of 183 million yuan, showcasing strong quarterly performance [1]. Product Development and Market Position - The company has enhanced its production capabilities for high-voltage wiring harnesses, which are essential for electric vehicles, and has established automated production lines that are being utilized by major automotive clients [2]. - The market for high-voltage wiring harnesses is expanding, with the unit value for electric vehicles exceeding 5000 yuan, compared to 3000 yuan for fuel vehicles, indicating a substantial opportunity for growth and domestic market share expansion [2]. Earnings Forecast - The company is projected to have an EPS of 1.43 yuan in 2024, 1.83 yuan in 2025, and 2.35 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 23, 18, and 14 [3].