三大新材料技术平台齐发力，P&S 及SMC 业务同比增长。公司P&S、软磁复合材料SMC 和金属注射成形 MIM 三大新材料技术平台齐发力，协同优势持续显现，三季度公司订单增加，营业收入增加。P&S 平台 1-9 月营业收入同比增长 16.62%，第三季度单季同比增长 0.05%；SMC 平台 1-9月营业收入同比减少 0.81%，第三季度单季同比增加 15.14%。费用端来看，公司前三季度期间费用率14.5%，yoy-2.62%，费用控制能力增强。由于公司为提升 MIM 零件及铰链模组能力的建设，加大了资源投入，一定程度上对三季度业绩产生影响。Matters:
The company released its three-quarter report for 2024, and achieved total operating income of 1.258 billion yuan (+23.41% YoY, +0.53%); net profit to mother of 0.087 billion yuan (+22.16%, -19.70% month-on-month); net profit of 0.085 billion yuan after deduction (+26.56% YoY). The company achieved revenue of 3.611 billion yuan (+29.80%); net profit to mother of 0.277 billion yuan (YoY +158.70%); and net profit of 0.263 billion yuan after deduction of non-return to mother (+307.98% YoY).
Ping An's point of view:
The three new material technology platforms are working together, and the P&S and SMC business grew year-on-year. The company's three new material technology platforms P&S, soft magnetic composites SMC, and metal injection molding MIM worked together, and synergetic advantages continued to show. The company's orders increased and revenue increased in the third quarter. The revenue of the P&S platform increased 16.62% year-on-year in January-September, and 0.05% year-on-year in the third quarter; the revenue of the SMC platform decreased by 0.81% year-on-year in January-September, and increased 15.14% year-on-year in the third quarter. On the cost side, the company's expense ratio for the first three quarters was 14.5%, YOY -2.62%, and its ability to control expenses was enhanced. As the company increased resource investment to improve MIM parts and hinge module capabilities, it had an impact on the third quarter results to a certain extent.
The growth momentum of folding screens was unleashed, and the MIM business continued to increase dramatically year over year. Well-known domestic companies continue to launch many new folding models. One of the key components is the hinge. Its hinge parts are manufactured using MIM technology, which provides a broad space for the development of MIM technology. Along with the recovery in the consumer electronics industry, the main business revenue of the company's MIM technology platform rebounded. The revenue of the company's MIM platform increased 88.48% year-on-year in January-September, and increased 72.12% year-on-year in a single quarter in the third quarter. As the global folding screen mobile phone market continues to grow, the competitiveness of the company's MIM business is expected to continue to improve.
Investment advice: Consumer electronics recovery combined with an increase in the penetration rate of folding screen phones opens up room for the company's MIM business growth. Boosted by demand for various terminals, as product technology upgrades and industrial chain layout deepening, the collaborative advantages of the three main businesses will be further highlighted. Maintain the company's 2024-2026 net profit forecast of 0.415, 0.532, and 0.684 billion yuan. The corresponding PE was 28.3, 22.1, and 17.2 times, maintaining the “Recommended” rating.
Risk warning: (1) Project progress falls short of expectations, and the company's profit growth falls short of expectations. If the project currently under construction progresses more slowly than expected, it may affect the pace of the company's future performance growth. (2) Downstream demand falls short of expectations. If demand for terminals shrinks to a large extent, the company's product sales may be affected to a certain extent. (3) Increased competition in the industry. Competition in the industry has greatly intensified or caused the company's product sales to fall short of expectations.
