HHI(601226) 国金证券·2024-10-29 12:51Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1]. Core Insights - The company reported a revenue of 4.93 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 25.1%. In Q3 alone, revenue reached 1.995 billion RMB, up 27.6% year-on-year [1]. - The net profit attributable to the parent company for the first three quarters of 2024 was 110 million RMB, a year-on-year increase of 29.9%, with Q3 net profit soaring to 70 million RMB, reflecting a 202.3% increase year-on-year [1]. - The report highlights a significant growth in capital expenditure (CAPEX) in the thermal power sector, with an investment completion amount of 87 billion RMB in the first three quarters of 2024, up 27.3% year-on-year [1]. - The company secured new contracts worth 9.256 billion RMB in 2023, with thermal power-related business orders making up a significant portion. The unconfirmed contract amount for this year is expected to accelerate [1]. - The report emphasizes the potential for new orders from flexible thermal power renovations and offshore wind construction, with new signed orders reaching 9.53 billion RMB in the first three quarters of 2024, a 61.6% increase year-on-year [1]. - The company is actively pursuing hydrogen and ammonia projects, benefiting from supportive policies and establishing a comprehensive industrial chain from resource generation to consumption [1]. Financial Forecasts and Valuation - The company is projected to achieve net profits of 270 million RMB, 349 million RMB, and 400 million RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.23 RMB, 0.30 RMB, and 0.34 RMB [1]. - The report assigns a price-to-earnings (P/E) ratio of 25x, 19x, and 17x for the years 2024, 2025, and 2026 respectively, maintaining the "Buy" rating [1].