SIFANG(601126) 华金证券·2024-11-03 13:18Investment Rating - The report maintains a "Buy-A" rating for the company, indicating strong confidence in its future performance [1] Core Views - The company's Q3 2024 performance met expectations, with revenue reaching 5.093 billion yuan, a YoY increase of 20.22%, and net profit attributable to shareholders of 609 million yuan, up 16.82% YoY [1] - The company continues to lead in market share for grid-related business, ranking among the top in relay protection equipment bidding for State Grid projects [1] - R&D investment has been increasing, with R&D expenses reaching 494 million yuan in the first three quarters, a YoY increase of 30.42%, leading to breakthroughs in new technologies and products [1] - The company is well-positioned to benefit from the construction of new power systems in China, with contract liabilities reaching 1.392 billion yuan, a YoY increase of 49.64%, indicating strong order backlog [1] Financial Performance - For Q3 2024, the company achieved revenue of 1.616 billion yuan, a YoY increase of 18.21%, and net profit attributable to shareholders of 186 million yuan, up 11.66% YoY [1] - Gross margin for Q3 2024 was 34.21%, a slight decrease of 2.48 percentage points YoY but an increase of 1.41 percentage points QoQ, indicating stable profitability [1] - Operating cash flow for the first three quarters was 574 million yuan, a YoY increase of 50.53%, reflecting strong cash flow performance [1] Future Projections - The company is expected to achieve net profits of 750 million yuan, 865 million yuan, and 1.010 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 0.90 yuan, 1.04 yuan, and 1.21 yuan per share [1] - Revenue is projected to grow at a CAGR of 20.8% from 2024 to 2026, reaching 10.086 billion yuan by 2026 [2] - ROE is expected to increase from 16.7% in 2024 to 19.1% in 2026, indicating improving profitability [2] Industry and Market Position - The company is a leading provider of new power system solutions and is expected to benefit significantly from China's accelerated development of new power systems [1] - The company has a strong position in the secondary equipment market and is actively expanding into the new energy market, which is expected to drive long-term growth [1]