HOLSIN(603909) 国金证券·2024-10-16 00:00Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company is expected to achieve a net profit of 63.35 million yuan in Q3 2024, representing a year-on-year increase of 114.59%, with a non-recurring net profit of 58.28 million yuan, up 123.21% year-on-year [1]. - The sustained high growth in performance is attributed to the increase in revenue from the construction business, which is expected to benefit from recent policies aimed at stabilizing the real estate market [1]. - Urban renewal projects are anticipated to provide additional business opportunities, particularly in underground pipeline construction, which the company is well-positioned to undertake [1]. - The government's efforts to address local debt will facilitate quicker collection of receivables and improve asset quality, benefiting the company's cash flow and return on equity (ROE) [1]. Summary by Sections Financial Performance - The company forecasts net profits of 81.71 million yuan, 99 million yuan, and 118.64 million yuan for 2024-2026, with year-on-year growth rates of 24%, 21%, and 20% respectively [2]. - Revenue is projected to grow significantly, with estimates of 6.71 billion yuan in 2024, 9.94 billion yuan in 2025, and 12.73 billion yuan in 2026, reflecting growth rates of 70.1%, 48.2%, and 28.0% respectively [3]. Valuation Metrics - The company's stock is currently priced at 8.16 yuan, with projected price-to-earnings (P/E) ratios of 26.0x, 21.5x, and 17.9x for 2024, 2025, and 2026 respectively [2][3]. Market Context - The report highlights the supportive policies from the government aimed at revitalizing the real estate market, which is expected to enhance collaboration between the company and its controlling shareholder in property development projects [1]. - The emphasis on urban renewal and infrastructure projects aligns with the company's capabilities in integrated engineering services, positioning it favorably for future growth [1].