Zhongjin Environment(300145) 国联证券·2024-11-01 13:16Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company achieved a revenue of 3.59 billion yuan in Q1-Q3 2024, a year-on-year decrease of 4%, while the net profit attributable to shareholders was 250 million yuan, an increase of 17%, mainly due to a reduction in environmental losses [2][6] - The company maintains a gross margin of 35.3%, down 2.7 percentage points year-on-year, and a net margin of 7.5%, up 1.2 percentage points year-on-year [6] - The company plans to absorb and merge its subsidiary, Southern Pump Industry, to focus on its core pump manufacturing business, which is expected to enhance management efficiency and asset quality [6] Financial Performance Summary - For Q1-Q3 2024, the company reported a gross margin of 35.3% and a net margin of 7.5% [6] - The projected revenues for 2024-2026 are 6.06 billion, 6.86 billion, and 7.71 billion yuan, with year-on-year growth rates of 11%, 13%, and 12% respectively [2][6] - The projected net profits for the same period are 390 million, 600 million, and 690 million yuan, with year-on-year growth rates of 93%, 54%, and 16% respectively [2][6] Business Strategy - The company aims to accelerate the collection of local debts, which is expected to improve cash flow and reduce bad debt provisions [6] - The company is positioned as a leader in the domestic stainless steel centrifugal pump industry, with an anticipated increase in market share due to the exit of smaller competitors [6] - The company is expanding its international presence along the "Belt and Road" initiative, establishing subsidiaries in Singapore, the United States, and Spain [6]