SIEYUAN(002028) 华龙证券·2024-10-31 01:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has sufficient orders on hand, and its profitability continues to improve. In the first three quarters of 2024, the company achieved revenue of 10.407 billion yuan, a year-on-year increase of 21.28%, and a net profit attributable to shareholders of 1.491 billion yuan, up 29.88% year-on-year [1] - The revenue structure has been optimized, leading to improved profitability. The gross margin for the first three quarters of 2024 was 31.42%, an increase of 1.31 percentage points year-on-year, and the net profit margin was 14.60%, up 0.76 percentage points year-on-year. This improvement in profitability is likely due to the increased contribution from overseas markets [1] - The company plans to invest 300 million yuan in a high-voltage GIS production base, with ongoing projects totaling 460 million yuan as of Q3 2024, primarily for the construction of a medium-voltage switchgear production base and a new energy company base in Jiangsu [1] Financial Summary - For the first three quarters of 2024, the company reported a revenue of 10.407 billion yuan and a net profit of 1.491 billion yuan. The revenue for Q3 2024 alone was 4.241 billion yuan, with a net profit of 604 million yuan [1] - The company expects to benefit from domestic investment growth and overseas demand for new and upgraded equipment. The projected net profits for 2024-2026 are 2.085 billion yuan, 2.541 billion yuan, and 3.068 billion yuan, respectively, with corresponding P/E ratios of 28.7, 23.5, and 19.5 [1][2] - The company's cash flow from operating activities is projected to be 920 million yuan in 2024, with net profits expected to reach 2.178 billion yuan [4] Comparable Company Valuation - The company is compared with peers such as Guodian NARI, China XD Electric, and XJ Electric, with its current valuation slightly above the industry average. The average P/E ratio for comparable companies is 44.9 for 2022A and 35.7 for 2023A, while the company's P/E ratios are 49.0 and 38.3 for the same years [3][2]