GON(002768)2024-11-05 04:00Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Views - The company reported a steady performance in Q3 2024, achieving revenue of 14.16 billion yuan, a year-on-year increase of 11.79%, and a net profit attributable to shareholders of 458 million yuan, up 21.17% year-on-year. In Q3 2024 alone, the company generated revenue of 4.83 billion yuan, reflecting a 2.08% year-on-year growth, while net profit rose by 43.91% year-on-year to 184 million yuan [1]. - The company has enhanced its cost control capabilities, with a decrease in the expense ratio to 4.0% in Q3 2024, down 1.3 percentage points from the previous quarter. The sales gross margin was 7.9%, a slight decline of 0.6 percentage points [1]. - The company is expanding its vertical integration in the chemical sector and leveraging opportunities in new materials to drive growth. It has significant production capacities in various upstream businesses and is actively developing lightweight composite materials for the new energy vehicle sector [2]. - The company is also expanding its production capacity for hollow capsules and integrating its collagen business to create a comprehensive health product ecosystem. The production capacity for hollow capsules is expected to increase to nearly 70 billion capsules per year [3]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 19.62 billion yuan, 22.98 billion yuan, and 26.00 billion yuan, respectively, with year-on-year growth rates of 37.93%, 25.68%, and 34.27%. The net profit attributable to shareholders is projected to be 643 million yuan, 808 million yuan, and 1.08 billion yuan for the same years [3][12]. - The earnings per share (EPS) are expected to be 2.37 yuan, 2.98 yuan, and 4.00 yuan for 2024, 2025, and 2026, corresponding to price-to-earnings (PE) ratios of 9.73, 7.74, and 5.77, respectively [3][12].