Sanfeng Environment(601827) 国泰君安·2024-10-31 00:50Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company shows steady growth in operational business, maintains high profitability, and has significantly improved cash flow [2]. - The projected net profits for 2024-2026 are estimated at 1.259 billion, 1.372 billion, and 1.498 billion yuan, with corresponding EPS of 0.75, 0.82, and 0.89 yuan [2]. - The target price is set at 11.25 yuan, indicating potential upside from the current price of 9.02 yuan [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 4.518 billion yuan, a year-on-year decrease of 0.47%. The net profit attributable to shareholders was 1.010 billion yuan, a year-on-year increase of 3% [2]. - In Q3 2024, the company reported revenue of 1.386 billion yuan, a year-on-year decline of 11%, while the net profit was 344 million yuan, a year-on-year decrease of 2% but a quarter-on-quarter increase of 24% [2]. - The comprehensive gross margin for Q3 2024 was 35.85%, an increase of 2.50 percentage points year-on-year, with a net profit margin of 23.61%, up 0.91 percentage points year-on-year [2]. Cash Flow and Capital Expenditure - The net cash flow from operating activities in Q3 2024 was 1.575 billion yuan, a year-on-year increase of 43% [2]. - Capital expenditure in Q3 2024 was 437 million yuan, a decrease of 47% year-on-year, indicating a clear trend of capital expenditure contraction [2]. Shareholder Returns - The indirect controlling shareholder has increased its stake in the company, acquiring 7.1264 million shares, representing approximately 0.42% of the total share capital [2]. - As of September 30, 2024, the company has repurchased 3.9131 million A-shares, accounting for about 0.233% of the total share capital, with a total transaction amount of approximately 29.99 million yuan [2].