VEICHI(688698) 民生证券·2024-11-04 07:30Investment Rating - The report maintains a "Recommend" rating for Weichai Electric (688698 SH) [1][3] Core Views - Weichai Electric's Q3 2024 performance exceeded expectations, with steady growth across all business segments [1] - The company achieved significant cost structure optimization and gross margin improvement [1] - Weichai Electric is expanding into the intelligent robotics sector, which is expected to enhance its product portfolio and competitiveness [1] Financial Performance Revenue and Profit - Q3 2024 revenue reached 386 million yuan, a 20 25% YoY increase but a 12 96% QoQ decline [1] - Net profit attributable to shareholders in Q3 2024 was 76 million yuan, up 51 88% YoY but down 5 74% QoQ [1] - For the first three quarters of 2024, revenue totaled 1 157 billion yuan, a 22 37% YoY increase, with net profit attributable to shareholders at 210 million yuan, up 34 09% YoY [1] Business Segments - General frequency converters: Revenue of 301 million yuan, down 3 13% YoY [1] - Industry-specific frequency converters: Revenue of 449 million yuan, up 51 69% YoY [1] - Servo systems and control systems: Revenue of 369 million yuan, up 21 62% YoY [1] Cost Structure and Profitability - Gross margin for the first three quarters of 2024 was 40 53%, up 2 57 percentage points YoY [1] - Net margin for the same period was 17 66%, up 1 33 percentage points YoY [1] - Q3 2024 gross margin reached 42 63%, up 5 52 percentage points YoY and 3 61 percentage points QoQ [1] R&D and Innovation - R&D expenses for the first three quarters of 2024 were 141 million yuan, a 36 20% YoY increase [1] - The company has 615 R&D personnel, accounting for 35 39% of total employees [1] - In Q3 2024, the company obtained 11 new patents, bringing the total number of valid patents to 222 (including 54 invention patents) [1] Future Outlook - Revenue is projected to reach 1 795 billion yuan in 2024, 2 444 billion yuan in 2025, and 3 280 billion yuan in 2026 [1][2] - Net profit attributable to shareholders is expected to be 255 million yuan in 2024, 344 million yuan in 2025, and 459 million yuan in 2026 [1][2] - The company's PE ratio is forecasted to be 27X in 2024, 20X in 2025, and 15X in 2026 [1][2] Industry and Market Position - Weichai Electric is strengthening its position in the industrial automation sector through product diversification and technological innovation [1] - The company's expansion into intelligent robotics is expected to create new growth opportunities in the automation and AI sectors [1]