Event: The company released its 2024 three-quarter report. In 2024Q1-Q3, the company achieved total operating income of 70.579 billion yuan, an increase of 8.75% year on year; net profit to mother was 2.793 billion yuan, an increase of 15.13% year on year.

Among them, the total revenue of 2024Q3 in a single quarter was 21.937 billion yuan, -0.08% YoY; net profit to mother was 0.777 billion yuan, -16.29% YoY.

Profit levels are under pressure in the short term. Gross profit margin: 2024Q3 companies' gross margin -2.45pct year-on-year to 20.76%.

Rate side: 2024Q3 Sales/ Management/ R&D/ Finance rate was 10.00%/2.64%/3.75%/0.42%, year-on-year change-

1.25pct/0.14pct/0.68pct/0.52pct. Changes in financial rates are mainly due to fluctuations in exchange earnings. Net interest rate: The company's 2024Q3 net interest rate changed year-on-year - 1.54 pct to 5.18%.

Cash received from products sold increased, inventory levels were optimized month-on-month, and contract liabilities increased. Cash flow:

2024Q3's net operating cash flow was 3.108 billion yuan, a year-on-year decrease of 36.43%, mainly due to the impact of the pace of preparation, as well as increases in balanced production reserves and payment of performance bonuses; of these, cash received from sales products was 21.67 billion yuan, an increase of 7.2% over the previous year. Balance sheet: As of 24Q3, the company's contract liabilities were +6.61%/+2.08% year over year, inventory +8.12%/-15.12% year over year, and other current liabilities -5.15%/-9.32% year over month.

Profit forecasting and investment advice. Considering the company's performance in the first three quarters of 2024 and the overall environment of the industry, we expect the company to achieve net profit of 3.301/3.737/4.219 billion yuan in 2024-2026, an increase of 16.4%/13.2%/12.9% year-on-year, and maintain the “increase” investment rating.

Risk warning: Real estate market fluctuation risk, raw material price fluctuation risk, automotive thermal management business expansion falls short of expectations, market competition increases risk.