ZHENHUA(000733) 中邮证券·2024-10-30 05:00Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Views - The company's performance is under short-term pressure due to project delays and product price pressures, with a significant decline in revenue and net profit for the first three quarters of 2024 [4][5] - The controlling shareholder's plan to increase holdings reflects confidence in the company's sustainable development [5][6] - Future profit projections for 2024-2026 indicate a recovery, with expected net profits of 10.10 billion, 14.11 billion, and 17.68 billion respectively, corresponding to PE ratios of 26, 19, and 15 times [6] Summary by Sections Company Overview - Latest closing price is 48.15 yuan, with a total market capitalization of 267 billion yuan and a PE ratio of 9.39 [1] Financial Performance - For Q1-Q3 2024, the company reported revenue of 3.74 billion yuan, a 38% decrease year-on-year, and a net profit of 645 million yuan, down 69% year-on-year [4] - In Q3 2024 alone, revenue was 1.31 billion yuan, a 24% decrease year-on-year, with a net profit of 224 million yuan, down 58% year-on-year [4] Cost and Expense Analysis - The gross margin for Q1-Q3 2024 was 49.59%, a decrease of 11.20 percentage points year-on-year, influenced by declining revenue and product price reductions [5] - The expense ratios for sales, management, R&D, and financial costs increased due to the decline in revenue [5] Shareholder Actions - The controlling shareholder, China Zhihua, plans to increase its stake in the company by investing between 1 billion and 2 billion yuan, with a maximum purchase price of 59.60 yuan per share [5] Future Projections - Revenue projections for 2024, 2025, and 2026 are 50.77 billion, 60.84 billion, and 69.91 billion yuan respectively, with corresponding growth rates of -34.82%, 19.84%, and 14.90% [8] - The expected net profit for 2024 is 1.01 billion yuan, with a significant recovery anticipated in subsequent years [8]