The company continued to perform well in the third quarter of 2024. In the third quarter, the company closely focused on the development strategies and business goals set at the beginning of the year, continued to strengthen competitiveness in core business areas, and overall business performance progressed steadily. While the company's mature business is developing steadily, it is actively promoting the expansion of business segments such as smart wiper system products, sensor products, semiconductor power devices, etc., continuously increasing market share, accelerating overseas market layout, continuously improving core competitiveness, and helping the company's overall performance grow.

Key operating indicators for the third quarter of 2024 were excellent. In the third quarter of 2024, the company achieved operating income of 0.53 billion yuan, a year-on-year increase of 16.3%, gross profit margin of 31.8%, a year-on-year increase of 1.7 percentage points. Net profit to mother was 0.097 billion yuan, an increase of 32.7% over the previous year, after deducting non-return net profit of 0.087 billion yuan, an increase of 75.3% year-on-year.

The company's operating conditions maintained a strong growth momentum in the first three quarters of 2024.

Committed to becoming the world's leading automotive core component service provider. Yunyi Electric has always taken the core values of “customer achievement, value as the foundation, openness and integrity, and striver as the foundation”, guided by the corporate vision of “becoming the world's outstanding automotive core component service provider”, rooted in the core automotive electronics field, firmly grasped the development trend of automobile electrification and intelligence, upheld strategic thinking, based on strategic goals, and took machinery, electronic control and connectivity as the strategic starting point, with strategic guidance from parts to components to systems, and using technological innovation and product structure optimization as the driving force to accelerate the formation of new quality productivity and create sustainable competitiveness New strengths; enhancements and In-depth strategic cooperation among industry chain partners accelerates overseas market share expansion, enables various business segments to go hand in hand through core competency expansion, and strives to become a globally competitive large-scale supplier for China's automotive electronics industry.

Investment advice. We believe that Yunyi Electric's multiple product lines are expected to continue to grow, driving the company's operating scale and profits to continue to rise. The company's net profit for 2024-2026 is 0.41 billion yuan, 0.51 billion yuan, 0.66 billion yuan, and EPS is 0.46 yuan, 0.59 yuan, and 0.75 yuan respectively, which is 20-22 times PE in 2024, corresponding to a reasonable value range of 9.20-10.12 yuan, giving it a “superior to the market” rating.

Risk warning. Sales of supporting models fell short of expectations, competition intensified, and overseas markets fluctuated.