经营业绩稳健，盈利能力逐步改善。24Q3 公司整体毛利率18.97%，同比-1.01pct，环比+0.35pct；净利率3.27%，同比-0.32pct，环比+0.66pct。销售费用/管理费用/研发费用分别为2.21%/5.09%/5.19%，同比-0.38pct/-1.10pct/+0.35pct，主要系公司持续加强费用管控。Incidents:
Feirongda released its 2024 three-quarter report. The company achieved operating income of 3.423 billion yuan in the first three quarters of 2024, +17.53% year over year; net profit to mother 0.104 billion yuan, +111.26% year over year; net profit after deducting non-return to mother 0.091 billion yuan, +225.15% year over year. The company achieved operating income of 1.254 billion yuan in 24Q3, +10.52% YoY, +5.67% month-on-month; net profit to mother 0.047 billion yuan, +4.66% YoY, +43.37%.
Comment:
Business performance is steady, and profitability is gradually improving. 24Q3's overall gross profit margin was 18.97%, -1.01 pct year on year, +0.35 pct month on month; net profit margin 3.27%, -0.32 pct year on year, +0.66 pct month on month. Sales expenses, management expenses, and R&D expenses were 2.21%/5.09%/5.19%, respectively, -0.38pct/-1.10pct/+0.35pct. The main reason is that the company continues to strengthen cost control.
Looking downstream, the company has three main application areas. Among them, the consumer electronics sector accounts for 38% of revenue, the communications sector accounts for 25% of revenue, and new energy (new energy vehicles, photovoltaics, energy storage, etc.) accounts for 35% of revenue. Benefiting from the recovery in market demand, the company's consumer electronics business shipments increased, and market share and gross margin continued to increase; the gross margin of the communications business increased significantly as production capacity was released; and the gross margin of the new energy business declined due to factors such as rising raw material prices, the introduction of new customers, and the proofing of some new projects.
The AI terminal+AI server is two-wheel drive, and I am optimistic that the company's new business will be launched soon. As market demand for AI terminals and AI servers grows rapidly, demand for thermal management and electromagnetic shielding functions is also increasing on a large scale. End-side cooling solutions for mobile phones have been upgraded from graphite to VC, and server-side cooling has also been iterated from air cooling to liquid cooling. The company has been deeply involved in the electromagnetic shielding and thermal conductivity industry for nearly 30 years. The market share of electromagnetic shielding materials has continued to increase, and it has mastered R&D and production technologies such as graphite sheets, ultra-thin heat pipes and ultra-thin VC. The server-related business has cooperated with customers to develop a variety of liquid cooling products and special radiators such as 3DVC/VCE, and some products have been delivered in small batches. With the large-scale release of subsequent products, it is expected to open up a second growth curve.
Profit forecast and investment advice: We expect the company's 2024-2026 revenue to be 5.215/6.31/7.572 billion yuan, net profit to mother 0.242/0.373/0.467 billion yuan, and corresponding PE 49x/32x/26x, respectively. First coverage, giving a “buy” rating.
Risk warning: customer development falls short of expectations, industry competition intensifies, raw material costs fluctuate
