SUMEC(600710) 民生证券·2024-10-25 09:11Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company has shown significant growth in its supply chain business, with a notable increase in non-recurring profit in Q3 2024, reflecting a strong operational performance [1]. - The company is positioned as a pioneer in mixed ownership reform and a benchmark for dual circulation development, focusing on advanced manufacturing, environmental protection, and textile sectors [1]. - The projected net profit for 2024-2026 is expected to grow steadily, with estimates of 10.88 billion, 11.68 billion, and 12.32 billion respectively, indicating a positive growth trajectory [1][2]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 86.941 billion yuan, a year-on-year decrease of 9.50%, while the net profit attributable to shareholders was 1.001 billion yuan, an increase of 12.03% [1]. - The gross profit margin improved by 1.47 percentage points year-on-year, reaching 6.57% for the first three quarters of 2024, driven by the growth in high-margin businesses [1]. - The company’s operating cash flow saw a remarkable increase of 1042.98% year-on-year, amounting to 3.982 billion yuan [1]. Business Segment Performance - The shipbuilding and large diesel engine businesses performed exceptionally well, with shipbuilding orders scheduled until 2028 and a 44% increase in large diesel engine exports [1]. - The textile and apparel segment also showed strong performance, with new export contracts totaling 1.09 billion dollars, a year-on-year increase of 20.8% [1]. - The environmental protection segment secured multiple projects domestically and internationally, contributing to the overall growth of the company [1]. Future Projections - Revenue is projected to decline in 2024 but is expected to recover in subsequent years, with growth rates of 5.3% and 3.9% in 2025 and 2026 respectively [2][4]. - The company’s earnings per share are forecasted to increase from 0.79 yuan in 2023 to 0.94 yuan in 2026, reflecting a positive outlook for profitability [2][5].