CHINT ELECTRICS(601877) 民生证券·2024-11-04 07:30Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Insights - In the first three quarters of 2024, the company achieved a revenue of 46.409 billion yuan, an increase of 8.89% year-on-year, and a net profit attributable to shareholders of 3.498 billion yuan, up 16.93% year-on-year [2]. - The third quarter of 2024 saw a revenue of 17.422 billion yuan, representing a year-on-year increase of 17.96% and a quarter-on-quarter increase of 33.28%. The net profit for the same period was 1.576 billion yuan, up 44.87% year-on-year and 87.23% quarter-on-quarter [2]. - The company focuses on quality improvement and efficiency enhancement, with a gross margin of 25.41% in the first three quarters of 2024, an increase of 2.54 percentage points year-on-year [2][3]. Financial Performance Summary - Revenue projections for 2024-2026 are 65.604 billion, 73.488 billion, and 82.438 billion yuan, with growth rates of 14.6%, 12.0%, and 12.2% respectively [4]. - Net profit attributable to shareholders is projected to be 4.410 billion, 5.095 billion, and 5.806 billion yuan for the same period, with growth rates of 19.6%, 15.5%, and 13.9% respectively [4]. - The company’s PE ratios for 2024-2026 are estimated at 11X, 10X, and 8X based on the closing price on November 1 [4]. Cost and Expense Analysis - The expense ratio for the first three quarters of 2024 was 12.78%, an increase of 1.47 percentage points year-on-year, with significant increases in financial, management, R&D, and sales expenses [3]. - The financial, management, R&D, and sales expenses were 1.325 billion, 1.767 billion, 896 million, and 1.943 billion yuan respectively, showing year-on-year increases of 50%, 24%, 9%, and 15% [3]. Strategic Developments - The company established a joint venture to expand its photovoltaic industry scale, focusing on household distributed photovoltaic power generation infrastructure projects [3].