Union Precision(688210) 东吴证券·2024-11-01 19:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future growth [1][4]. Core Insights - The company achieved a revenue of 590 million yuan in the first three quarters of 2024, representing a year-on-year growth of 60.9%. The net profit attributable to the parent company was 5 million yuan, up 124.3% year-on-year [2]. - The company is actively enhancing its R&D capabilities, with R&D investment reaching 70 million yuan, a 26.7% increase year-on-year. This investment supports the development of core technologies in various manufacturing processes [3]. - The company is expanding its production capacity overseas, particularly in Vietnam, to meet international demand, while also accelerating the production ramp-up of its MIM production base in Changsha, Hunan [3]. Financial Performance Summary - The total revenue forecast for 2024 is 841.48 million yuan, with a projected net profit of 82.62 million yuan, reflecting a growth rate of 49.80% and 40.58% respectively [1][4]. - The sales gross margin is reported at 39.9%, an increase of 5.5 percentage points year-on-year, while the net profit margin stands at 7.6%, showing a decline due to foreign exchange losses and increased equity compensation costs [2]. - The company’s operating expenses have shown significant efficiency improvements, with R&D, sales, and management expense ratios at 12.5%, 1.2%, and 9.6% respectively, indicating effective cost control measures [2].