Xianheng International(605056) 山西证券·2024-11-06 10:20Investment Rating - The report assigns an "Add-A" investment rating to the company, indicating a positive outlook for its stock performance in the near term [1][3]. Core Insights - The company has achieved significant growth in revenue and profit, with a reported revenue of 1.989 billion yuan for Q3 2024, representing an 18.82% year-on-year increase, and a net profit of 97 million yuan, reflecting a 58.81% increase [1]. - The company is benefiting from its expansion into new sectors, particularly in the energy industry, which is expected to continue driving revenue growth [1][3]. - The MRO (Maintenance, Repair, and Operations) market in China is transitioning from traditional procurement to centralized procurement, providing a favorable environment for the company's growth [3]. Summary by Sections Company Performance - In Q3 2024, the company reported a revenue of 1.989 billion yuan, up 18.82% year-on-year, and a net profit of 97 million yuan, up 58.81% year-on-year [1]. - The company has maintained a stable performance in the power grid sector while expanding into oil, gas, and new e-commerce sectors [3]. Financial Projections - The company is projected to achieve net profits of 200 million yuan, 260 million yuan, and 370 million yuan for the years 2024, 2025, and 2026, respectively [3]. - Earnings per share (EPS) are expected to be 0.5 yuan, 0.6 yuan, and 0.9 yuan for the same years [3]. Market Context - The total investment in the power grid is approximately 2.57 trillion yuan, with a planned investment of 2.9 trillion yuan during the 14th Five-Year Plan period, indicating a significant increase in capital allocation for infrastructure [2]. - The global digital meter market is expected to grow from 847 million USD in 2019 to 1.047 billion USD by 2024, highlighting the growth potential in related sectors [2].