EIT(300815) 国金证券·2024-10-30 02:00Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 1.51, 1.85, and 2.21 for the years 2024, 2025, and 2026 respectively, corresponding to price-to-earnings (PE) ratios of 10x, 8x, and 7x [3]. Core Insights - The company reported a revenue of 5.22 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 16.7%, and a net profit attributable to shareholders of 496 million RMB, up 7.9% year-on-year. In Q3 alone, revenue reached 1.82 billion RMB, a 17.5% increase year-on-year, with a net profit of 170 million RMB, reflecting a 19.1% growth [1]. - The order book remains strong, with a total of 36.87 billion RMB in contracts to be executed in the sanitation business as of the end of the first half of 2024. The acquisition of large contracts is a key driver for the company's steady growth, with annual service fees from new contracts providing revenue certainty [2]. - The company is expanding into the sanitation robotics sector, having invested 80 million RMB to acquire a 34.65% stake in Candela Technology and initiated strategic procurement for sanitation robots worth 30 million RMB [2]. - A planned issuance of convertible bonds to raise up to 1.5 billion RMB will support the expansion of the sanitation equipment configuration center and enhance liquidity [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 5.22 billion RMB, with a net profit of 496 million RMB, marking increases of 16.7% and 7.9% respectively year-on-year. Q3 results showed revenue of 1.82 billion RMB and a net profit of 170 million RMB, up 17.5% and 19.1% year-on-year [1]. - The company expects net profits of 600 million RMB, 740 million RMB, and 880 million RMB for 2024, 2025, and 2026 respectively, with corresponding EPS figures [3]. Order and Contract Insights - The company has a robust order pipeline with 36.87 billion RMB in sanitation contracts pending execution, driven by the acquisition of large contracts [2]. - New significant contracts include a 93.96 million RMB annual service fee project in Hunan, contributing to revenue growth [2]. Strategic Initiatives - The company is venturing into the sanitation robotics market, indicating a strategic shift towards technology integration in its operations [2]. - The planned fundraising through convertible bonds aims to bolster the company's capacity to secure larger contracts and expand market share [2].