Investment Rating - The report maintains a "Buy" rating for Wuxin Tunnel Equipment (835174 BJ) [2] Core Views - Wuxin Tunnel Equipment plans to issue shares to acquire Wuxin Heavy Industry and Xingzhong Technology, aiming to expand its business in railway and highway construction equipment [2] - The company's revenue for Q1-3 2024 was 604 million yuan, a year-on-year decrease of 14 11%, while net profit attributable to shareholders was 93 95 million yuan, down 19 10% [3] - The report highlights strong growth in the aftermarket, with aftermarket revenue increasing by 115 88% year-on-year, and significant growth in the water conservancy and hydropower (89 86%) and mining (115 65%) sectors [3] - The company's stock is expected to resume trading on December 10, 2024, following the acquisition announcement [3] Financial Performance and Forecast - The report forecasts net profit attributable to shareholders for 2024-2026 at 162 million yuan, 193 million yuan, and 230 million yuan, respectively, with EPS of 1 80 yuan, 2 14 yuan, and 2 55 yuan [3] - The current P/E ratio is 15 1x for 2024, 12 7x for 2025, and 10 7x for 2026 [3] - Revenue for 2024-2026 is projected at 925 million yuan, 1 106 billion yuan, and 1 313 billion yuan, with year-on-year growth rates of -3 1%, 19 6%, and 18 7%, respectively [6] - Gross margin is expected to remain stable, increasing slightly from 37 3% in 2024 to 37 6% in 2026 [6] Business Segments - The water conservancy and hydropower sector, along with mining, contributed 11 61% of total revenue in Q1-3 2024, up from 4 94% in the same period last year [3] - The aftermarket segment's revenue share increased to 7 06% in Q1-3 2024, compared to 2 81% in the same period last year [3] Acquisition Details - Wuxin Tunnel Equipment plans to acquire 100% equity of Wuxin Heavy Industry and Xingzhong Technology through a combination of share issuance and cash payment [3] - The acquisition is expected to enhance the company's growth in railway and highway construction equipment manufacturing [3] Financial Ratios - The company's ROE is projected to be 19 3% in 2024, 19 2% in 2025, and 19 1% in 2026 [6] - The net profit margin is expected to remain stable at around 17 5% from 2024 to 2026 [6] - The P/B ratio is forecasted to decrease from 2 9x in 2024 to 2 0x in 2026 [6]
五新隧装：北交所信息更新：拟发行股份并购五新重工，水利水电业务高速增长