SPG(600529) 长江证券·2024-11-04 07:40Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 3.825 billion with a year-on-year increase of 4.1% for the first three quarters, and a net profit attributable to shareholders of 720 million, up 17.3% year-on-year [3][4]. - The decline in Q3 revenue by 1% is attributed to a significant drop in trade and carton businesses, but the demand for medium borosilicate glass continues to grow rapidly [4][5]. - The gross margin for Q3 was 31.6%, an increase of 0.9 percentage points year-on-year, benefiting from lower raw material costs [4]. - The company is expected to maintain steady growth, with a projected net profit of 930 million and 1.08 billion for 2024 and 2025, respectively, corresponding to PE ratios of 18 and 15 times [5]. Summary by Sections Financial Performance - For the first three quarters, the company achieved a gross margin of 32.1%, up 3.9 percentage points year-on-year, with a net profit margin of 18.8%, an increase of 2.1 percentage points [3]. - The company’s cash flow from operating activities was 1.048 billion in 2023, with a projected net cash flow of 885 million in 2024 [9]. Market Outlook - The demand for medium borosilicate glass is expected to improve, with the penetration rate projected to reach 30% by the end of the year [5]. - The company is well-positioned to lead the upgrade of medium borosilicate products due to its cost, technology, and customer advantages [5]. Valuation Metrics - The current stock price is 25.00, with a total share capital of 66.361 million shares and a net asset value per share of 11.74 [6]. - The company’s earnings per share (EPS) for 2023 is projected at 1.17, increasing to 1.91 by 2026 [9].