Huitian New Materials(300041) Guohai Securities·2024-11-07 05:44Investment Rating - The investment rating for the company is upgraded to "Accumulate" [1][6][9] Core Views - The photovoltaic sector has negatively impacted the company's performance, with a year-on-year decline in revenue and net profit for the first three quarters of 2024. However, the electronic adhesive segment is expected to continue its growth trajectory [1][3][6] - The company achieved a revenue of 1.015 billion yuan in Q3 2024, reflecting a year-on-year increase of 0.87% but a quarter-on-quarter decrease of 2.71%. The net profit attributable to shareholders was 26 million yuan, down 63.67% year-on-year and 54.20% quarter-on-quarter [1][2] - The company is focusing on expanding its market share in the electronic adhesive sector, which has shown robust growth despite challenges in the photovoltaic business [2][3] Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 3.028 billion yuan, a decrease of 1.91% year-on-year, and a net profit of 163 million yuan, down 44.86% year-on-year [2][6] - The gross profit margin for the photovoltaic business has declined due to intense competition and low pricing in the industry, while the overall adhesive sales volume increased by approximately 20% [2][3] - The company’s operating cash flow for Q3 2024 was 156 million yuan, with a gross margin of 16.72%, down 3.81 percentage points year-on-year [1][2] Future Earnings Forecast - The company is projected to achieve revenues of 3.945 billion yuan in 2024, 4.684 billion yuan in 2025, and 5.472 billion yuan in 2026, with corresponding net profits of 187 million yuan, 259 million yuan, and 348 million yuan respectively [6][7][9] - The expected P/E ratios for the years 2024, 2025, and 2026 are 27.59, 19.85, and 14.77 respectively, indicating a potential for improved valuation as the electronic adhesive segment grows [6][7][9]