HANGYANG LIMITED(002430) 长江证券·2024-11-15 03:15Investment Rating - The investment rating for the company is "Buy" and it is maintained [2]. Core Views - The company achieved a revenue of 10.35 billion yuan in Q1-Q3 2024, representing a year-on-year increase of 5.85%, while net profit was 675 million yuan, down 20.68% year-on-year. In Q3 alone, revenue was 3.625 billion yuan, up 8.66% year-on-year, with net profit at 238 million yuan, down 26.99% year-on-year [2][3]. - The gross margin decreased by 4.55 percentage points year-on-year to 19.85% in Q3 2024, which was the main reason for the decline in net profit margin. However, management expenses were well controlled, with a management expense ratio down 2.80 percentage points year-on-year [2][3]. - There is a marginal recovery in gas prices, with liquid oxygen, nitrogen, and argon prices increasing by 3%, 2.4%, and 3.85% respectively in October. The average market prices for these gases have shown an upward trend [3]. - The company has a robust pipeline of new projects, having signed new construction and acquisition projects with a total output of 367,500 Nm³/h, exceeding the total for 2023. The largest project is an 80,000 Nm³/h air separation unit in Shanxi [3][4]. - Contract liabilities increased to 3.21 billion yuan by the end of Q3 2024, indicating a healthy order backlog, primarily from the chemical industry [4]. - The company is expanding its overseas market presence, having established an overseas business unit and signed significant export contracts, including a 64,000 Nm³/h order for India and a 50,000 Nm³/h order for Mexico [4]. - The company is projected to achieve net profits of 1.008 billion yuan, 1.305 billion yuan, and 1.553 billion yuan for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 26, 20, and 17 [4].