Wuxi Zhenhua(605319) 申万宏源·2024-11-04 03:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [5][6]. Core Insights - The company reported Q3 2024 results that met expectations, with a revenue of 1.73 billion yuan, a year-on-year increase of 7.1%, and a net profit attributable to shareholders of 250 million yuan, up 50.3% year-on-year [5][7]. - The revenue in Q3 2024 was 613 million yuan, showing a slight decline of 5.3% quarter-on-quarter, attributed to poor sales performance from core customers in the SAIC group [5][7]. - The company's gross margin improved to 25.6% in Q3 2024, with a net profit margin of 15.0%, benefiting from a shift in customer structure towards new energy clients and a decrease in raw material costs [5][7]. - The company is expanding its production capacity and enhancing its service capabilities, particularly through investments in new facilities and acquisitions in the precision electroplating business, which is expected to become a significant growth driver [5][7]. Financial Data Summary - For 2024, the company expects total revenue of 2.602 billion yuan, a year-on-year growth of 12.3%, and a net profit of 350 million yuan, reflecting a growth rate of 26.1% [7][9]. - The projected earnings per share for 2024 is 1.40 yuan, with a price-to-earnings ratio of 13 [7][9]. - The company anticipates continued growth in revenue and net profit through 2026, with net profit expected to reach 585 million yuan by then [7][9].