Sugon(603019) 东兴证券·2024-11-05 06:23Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating a positive outlook for its stock performance relative to market benchmarks [3][10][19]. Core Insights - The company's performance in the first three quarters of 2024 met expectations, with a revenue of 8.041 billion yuan, a year-on-year increase of 3.65%, and a net profit attributable to shareholders of 770 million yuan, up 2.57% year-on-year [2][3]. - Investment income saw significant growth, reaching 412 million yuan, a year-on-year increase of 82.03%, primarily driven by the profitability of associated companies [2][3]. - The gross margin improved to 26.81%, an increase of 0.94 percentage points year-on-year, attributed to a higher proportion of self-developed products [3]. Financial Performance Summary - Revenue and Profitability: - For the first three quarters, revenue was 8.041 billion yuan, with a net profit of 770 million yuan [2]. - The third quarter alone saw revenue of 2.329 billion yuan, a decrease of 1.19% year-on-year, but net profit increased by 0.41% to 206 million yuan [2]. - Future Profit Projections: - Expected net profits for 2024, 2025, and 2026 are projected at 2.301 billion yuan, 2.833 billion yuan, and 3.395 billion yuan, respectively, with corresponding EPS of 1.57, 1.94, and 2.32 yuan [3][5]. - Valuation Metrics: - The current stock price corresponds to PE ratios of 38.44, 31.23, and 26.06 for the years 2024, 2025, and 2026, respectively [3][5].