The company released its 2024 three-quarter report

In the first three quarters of 2024, the company achieved revenue of 59.536 billion yuan, +11.34% year-on-year; realized net profit of 0.791 billion yuan, +10.06% year-on-year, and realized net profit without deduction of 0.762 billion yuan, or +18.16% year-on-year.

Among them, the 2024Q3 company achieved operating income of 20.802 billion yuan, -0.73% month-on-month, +14.03% year-on-year, realized net profit of 0.212 billion yuan, -28.49% month-on-month, +0.86% year-on-year, and 0.205 billion yuan after deducting non-return net profit of 0.205 billion yuan, -27.76% month-on-month and +20.67% year-on-year.

In the first three quarters of 2024, the company's gross sales margin was 3.64%, +0.36pct year on year, and the net sales margin was 1.32%, -0.02pct year on year. 2024Q3, the company's gross sales margin was 3.43%, -0.15pct month-on-month, net sales margin 1.02%, and -0.37pct month-on-month.

Leading supplier of lightweight automobiles, continuously optimizing product structures

Up to now, the company has become a supplier of many leading domestic and foreign car brands, including BMW, Mercedes-Benz, Audi, Volvo, BYD, Ideal Auto, Ningde Era, Xiaomi, Nissan, Zero Run, NIO, GAC, Chery, Geely, Chery, etc., and has quickly joined the leading supplier list of domestic automobile lightweight profiles. In the future, the company will further optimize the company's product structure, shift to high-end precision processing with higher added value and higher technical barriers, enhance the supply capacity of superior high-end products, maintain the company's advantages in high-end aluminum alloy material circuits such as 3C consumer electronics and automobile weight reduction, enhance the profitability of products, strengthen the company's core competitiveness, and promote the company's high-quality development.

Vietnam's 3C production capacity construction is progressing steadily, expanding overseas competitiveness. The company invested 0.19 billion US dollars to carry out 3C consumer electronics profile and other projects in Vietnam to build a global 3C consumer electronics profile supply chain factory, and some production lines will be put into operation one after another by the end of 2024. The company plans to invest 0.19 billion dollars in projects such as lightweight aluminum alloy materials for automobiles in Mexico.

Currently, the company has completed the land purchase for the Mexican project, and other related preparations are underway.

Investment advice:

We expect the company to achieve operating income of 78.901, 79.604, and 80.863 billion yuan respectively in 2024-2026, with net profit of 1.132, 1.489, and 1.611 billion yuan, corresponding EPS of 0.28, 0.36, and 0.39 yuan/share, respectively. Currently, the corresponding PE price is 15.1, 11.5, and 10.6 times. The company maintains a “buy-A” rating, with a target price of 5.94 yuan/share for 6 months, corresponding to about 21 times PE in 24 years.

Risk warning: demand falls short of expectations, raw material prices fluctuate greatly, and project progress falls short of expectations