TTC(SH:600326) Tianfeng Securities·2024-10-31 07:55Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [4][6]. Core Views - The company has shown a significant improvement in Q3 profits, with a net profit of 1.35 million yuan, a substantial recovery from previous losses [2]. - The construction segment has seen a notable increase in new signed contracts, with a total of 1.05 billion yuan in Q3, indicating strong future growth potential [5]. - The cement production volume in Q3 reached 4.44 million tons, reflecting a year-on-year increase of 9.85%, which is contrary to the national trend [3]. Financial Performance Summary - For the first three quarters of the year, the company reported revenues of 204.4 million yuan and a net loss of 6.6 million yuan, representing a year-on-year decline of 27.22% and an increase in losses by 75.50% respectively [2]. - The construction segment's revenue for the first three quarters was 296 million yuan, down 54% year-on-year, but Q3 alone saw a revenue increase of 43.47 million yuan [5]. - The overall gross margin for the company improved to 24.22% in Q3, up 5.3 percentage points year-on-year [5]. Future Projections - The projected net profits for the company are adjusted to 50 million yuan for 2024, 380 million yuan for 2025, and 810 million yuan for 2026, reflecting a downward revision from previous estimates [6]. - The expected revenue growth rates for the upcoming years are forecasted at 0.64% for 2024, 23.63% for 2025, and 19.26% for 2026 [7][16]. Market Position - The company is positioned as a leading player in the cement industry, with a focus on leveraging upcoming infrastructure projects to boost demand, potentially increasing annual cement demand by 3.6 million tons [3].