Investment Rating - The report maintains a "Recommend" rating for the company, highlighting its strong position in clean energy and synergistic development in energy storage, virtual power plants, and computing power [12] Core Views - The company's distributed photovoltaic and energy storage operations have driven a significant increase in non-GAAP net profit, with a year-on-year growth of 60.10% in the first three quarters of 2024 [3] - The company's renewable energy installed capacity accounts for 57.81% of its total power generation capacity, with significant growth in distributed photovoltaic installations [6] - The company has successfully launched over 1,000 P of computing resources and maintains a reserve of computing power to support its energy + computing power synergistic development strategy [1] Financial Performance - In the first three quarters of 2024, the company achieved revenue of 7.552 billion yuan, a year-on-year decrease of 15.70%, and a net profit attributable to the parent company of 606 million yuan, a year-on-year decrease of 36.43% [3] - The company's gross profit margin and net profit margin for the reporting period were 26.05% and 9.33%, respectively, with a period expense ratio of 15.75% [4] - The company's cash flow situation is healthy, with a cash collection ratio of 128.43% and a net profit cash content of 246% [4] Business Development - The company's total installed capacity reached 5976.36 MW by the end of the reporting period, including 2017.14 MW of gas-fired cogeneration, 2083.37 MW of photovoltaic power generation, and 700 MW of energy storage [6] - The company has developed a "photovoltaic + storage + charging" integrated energy replenishment business, with 52 operational battery swap stations and 10,938 DC fast charging guns developed by the end of September 2024 [6] - The company's virtual power plant has a dispatchable load scale of approximately 300 MW, accounting for about 20% of the actual dispatchable load in Jiangsu Province [6] Future Projections - The company is expected to achieve net profits attributable to the parent company of 902 million yuan, 1.107 billion yuan, and 1.393 billion yuan in 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 14.56x, 11.87x, and 9.43x [4][13] - The company's revenue growth rate is projected to be -0.29%, 10.21%, and 12.76% in 2024, 2025, and 2026, respectively, with gross profit margins of 23.34%, 24.84%, and 26.18% [13]

Performance Overview - In October 2024, small-cap stocks outperformed large-cap stocks, with the typical index showing a trading activity increase[3] - The proportion of stocks that rose in typical indices was approximately 47%[10] - The turnover rates for major indices increased compared to September, with the STAR 50 index nearly doubling its turnover rate[13] Sector Analysis - In October 2024, 21 sectors saw gains in mid-cap stocks, with the top three performing sectors being construction, communication, and computer[33] - Among small-cap stocks, 23 sectors experienced gains, with the highest increases in construction materials, construction, and computer sectors[33] - The sectors with the highest turnover rates for mid-cap stocks were communication, computer, and construction, with some exceeding 1.5 times the index turnover rate[38] Investment Recommendations - It is advised to focus on sectors with expected continued excess returns, such as construction, communication, machinery, and utilities, as well as automotive and home appliances showing signs of fundamental recovery[58] Risk Factors - Risks include macroeconomic fluctuations, potential declines in industry prosperity, and uncertainties in domestic and international policies[62]

北交所周报 北证开市三周年，锚定创新中小企业主阵地 2024 年 11 月 16 日 核心观点 ● 北证 50 指数周涨跌幅为-3.38%。本周,北证 50 涨跌幅为-3.38%。北交 所 257 家上市公司中,有 93 家公司周涨幅为正,聚星科技(+560.80%) 涨 幅领先,其次是大地电气(+172.72%)、武汉蓝电(+62.78%)、纳科诺尔 (+53.38%)等,跌幅最大的是晟楠科技(-18.75%)。从行业来看,本周北 交所多数行业下跌,其中电力设备行业(+26.7%)涨幅最大,其次是公用事 业行业(+17.2%)、通信行业(+9.7%),而国防军工行业(-11.4%)跌幅 最大。 ● 本周北交所整体交易活跃度仍处于较高水平。本周北交所日均成交额约为 359.30 亿元,较上周的 498.25 亿元有所回落。北交所本周整体成交额为 1,796.51 亿元,成交量为86.77亿股。本周北交所的换手率水平为 57.10%, 虽较上周有所回落,但仍高于科创板、沪深主板和创业板。 ● 北交所将以更大力度支持科技创新,持续推动投融资两端协调发展。三年 来,北交所市场运行总体平稳,优质企业初步聚集,市场生态 ...

Group 1 - The report indicates that in October 2024, small and mid-cap stocks outperformed large-cap stocks, with notable performance in the construction and communication sectors [3][10][33] - The typical index performance showed a divergence, with the CSI 500, CSI 1000, National Index 2000, and STAR 50 indices rising, while the SSE 50 and CSI 300 indices declined, suggesting a better overall performance for small and mid-cap stocks compared to large caps, although marginally weaker than September [3][10][33] - The turnover rate for all typical indices increased compared to September, with the STAR 50 index experiencing a nearly twofold increase, reaching new highs since 2021 [3][13][16] Group 2 - In October 2024, 21 industries saw mid-cap stocks rise, while 5 industries experienced declines, with the top three performing sectors being construction, communication, and computer [33][41] - Among small-cap stocks, 23 industries rose, with the top three sectors being building materials, construction, and computer, indicating significant excess returns in these areas [33][41] - The report highlights that mid-cap stocks in the construction, communication, and machinery sectors are expected to continue generating excess returns, along with potential reversals in the automotive and home appliance sectors [58] Group 3 - The report identifies that the mid-cap stocks with the highest turnover rates in October 2024 were in the communication, computer, and construction sectors, with some industries exceeding 1.5 times the turnover rate of their respective indices [38][39] - For small-cap stocks, the highest turnover rates were observed in the computer, communication, and defense industries, with several sectors also exceeding 1.5 times their index turnover rates [38][39] - The report suggests that the construction, communication, machinery, and utilities sectors are likely to maintain their excess returns, while automotive and home appliance stocks may see fundamental recovery and potential market reversals [58]

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Insights - The company is a leading player in the engineering machinery sector, showing significant improvement in profitability. It has a diverse product range including loaders and excavators, with a revenue growth of 4% in 2023 despite a 1.12% decline in the industry [2][3]. - The domestic demand for engineering machinery is on the rise, supported by favorable monetary and fiscal policies, while international markets present substantial growth opportunities [2][3][13]. - The company's ongoing business expansion and mixed-ownership reform are enhancing operational efficiency and market competitiveness [3][20]. Summary by Sections 1. Company Overview - The company is a well-established manufacturer in the engineering machinery sector, with a significant focus on earth-moving machinery, which accounted for 58% of its revenue in 2023 [2][24]. - It has a comprehensive product line that includes cranes, mining machinery, agricultural machinery, and forklifts, making it one of the few companies globally that can provide a full range of solutions [2][24]. 2. Industry Analysis - The domestic market for excavators has shown a year-on-year increase of 21.6% in October, with a cumulative growth of 9.8% from January to October 2023, indicating a recovery in demand [2][60]. - The global engineering machinery market is valued at approximately 2,434 billion USD in 2023, with a 5.6% year-on-year growth, highlighting the potential for Chinese companies to increase their market share internationally [2][3]. 3. Business Development - The company has successfully expanded its business into new areas, achieving a 159% year-on-year increase in electric product sales in the first half of 2024, and its excavator market share has reached over 14% [3][13]. - The mixed-ownership reform has improved decision-making and management efficiency, contributing to enhanced profitability [3][20]. 4. Financial Forecast and Investment Recommendations - The company is expected to achieve net profits of 1.506 billion CNY, 2.056 billion CNY, and 2.634 billion CNY for the years 2024 to 2026, respectively, with a corresponding PE ratio of 16.5x, 12.1x, and 9.5x [3][6]. - The report anticipates continued revenue and profit growth driven by domestic demand recovery and international expansion [3][6].

Economic Overview - The overall fixed asset investment in China from January to October reached 42,322.2 billion yuan, with a year-on-year growth of 3.4%[19] - Infrastructure investment growth for the same period was 4.3%, slightly up from 4.1%[25] Consumer Spending - In October, the total retail sales of consumer goods increased by 4.8% year-on-year, up from 3.2% in the previous month[11] - Home appliance consumption surged by 39.2% year-on-year, significantly higher than the previous 20.5%[11] Real Estate Market - From January to October, real estate investment saw a cumulative year-on-year decline of 10.3%, worsening from a previous decline of 10.1%[32] - The sales area of new commercial housing decreased by 15.8% year-on-year, but the decline rate has narrowed compared to the previous 17.1%[32] Industrial Production - The industrial added value in October grew by 5.3% year-on-year, with manufacturing increasing by 5.4%[39] - High-tech manufacturing saw a significant increase, with added value growing by 9.4% year-on-year, outperforming overall industrial growth by 4.1 percentage points[7] Infrastructure Investment - The acceleration of project funding disbursement is expected to boost infrastructure investment growth, which has recently shown signs of recovery[25] - The issuance of special bonds for local government projects reached 2.83 trillion yuan by the end of September, with a planned total of 3.12 trillion yuan for the year[25]

Investment Rating - The report provides a positive investment outlook for the steel sector, indicating a potential recovery in demand due to policy support and consumption boost [3]. Core Insights - The issuance of long-term special government bonds and large-scale equipment renewal policies are expected to stimulate steel demand gradually [3]. - The elimination of outdated steel production capacity is promoting supply-side reforms, which will benefit leading steel enterprises in terms of revenue scale and cost control [3]. Summary by Sections - **Policy Impact**: The report highlights that recent government policies are aimed at enhancing domestic demand, which is likely to benefit the steel sector [3]. - **Market Dynamics**: It notes that the recovery in steel demand is anticipated as a result of increased consumption and the clearing of inefficient production capacity [3]. - **Company Performance**: Leading steel companies are expected to perform better due to improved revenue and cost management strategies [3].

Economic Overview - The overall fixed asset investment in China from January to October reached 42,322.2 billion yuan, with a year-on-year growth of 3.4%[20] - Infrastructure investment growth has rebounded to 4.3% in the same period, up from 4.1%[26] Consumer Spending - In October, the total retail sales of consumer goods increased by 4.8% year-on-year, compared to 3.2% in the previous month[12] - Home appliance consumption surged by 39.2% year-on-year, significantly up from 20.5%[12] Real Estate Market - Real estate investment from January to October saw a cumulative year-on-year decline of 10.3%, worsening from a previous decline of 10.1%[7] - The sales volume of new residential properties decreased by 15.8% year-on-year, but the decline rate has narrowed compared to previous months[33] Industrial Production - The industrial added value in October grew by 5.3% year-on-year, slightly down from 5.4% in September[40] - High-tech manufacturing industries showed robust growth, with added value increasing by 9.4% year-on-year[7] Policy Impact - The implementation of debt relief policies is expected to significantly improve market liquidity and local investment spending, stabilizing investment and consumption growth[10] - The combination of policies aimed at stabilizing the real estate market and boosting the capital market is expected to enhance consumer confidence[12]

Investment Rating - The report maintains a "Recommended" rating for the steel industry [4] Core Viewpoints - The steel sector is expected to benefit from policies promoting domestic demand, particularly through the issuance of special bonds aimed at supporting major projects and manufacturing upgrades [1][2] - The issuance of long-term special bonds has reached 752 billion yuan in the first three quarters, with an additional 100 billion yuan planned for the fourth quarter to support key projects [1] - The government's push for large-scale equipment updates and the promotion of consumption upgrades are anticipated to enhance steel demand in the short term, while also facilitating supply-side structural reforms in the long term [2] Summary by Sections Policy Impact - The recent decision by the National People's Congress to increase local government debt limits is aimed at enhancing counter-cyclical adjustments, which will positively impact the steel industry through increased investment in manufacturing upgrades [1] - The focus on major technology upgrades and equipment renewal is expected to stimulate effective demand in the steel market [1] Demand and Supply Dynamics - The demand for steel is projected to improve due to policies supporting equipment updates and consumption upgrades, with significant potential for recovery in the steel market [2] - The supply-side structural reforms are being accelerated, with measures in place to phase out outdated production capacity [2] Investment Recommendations - The report suggests focusing on leading steel companies such as Baosteel, Hualing Steel, and Nanjing Steel in the ordinary steel sector, and on CITIC Special Steel and Jiuli Special Materials in the special steel sector [3]

Investment Rating - The report maintains a "Recommended" rating for the communication industry [4] Core Insights - The communication sector index increased by 6.28% in October 2024, with sub-sectors like video conferencing and optical devices performing particularly well, showing gains of 18.70% and 32.73% respectively [1][18] - The telecommunications industry is experiencing stable economic operations, with total telecom business volume reaching 13,548 billion yuan, a year-on-year increase of 10.7%, and total revenue of 13,152 billion yuan, up 2.6% [2][32] - The construction of new infrastructure, particularly 5G networks, is progressing steadily, with the total number of 5G base stations reaching 4.089 million, an increase of 712,000 from the end of the previous year [2][38] Summary by Sections Market Performance - The communication industry index rose by 6.28% in October 2024, with significant performance from sub-sectors like video conferencing and optical devices [1][18] - The proportion of stocks in the communication sector that increased, remained stable, or decreased was 80.00%, 1.54%, and 18.46% respectively [27] Economic Operations - As of Q3 2024, the telecommunications business revenue growth has slowed, but the overall business volume maintains a double-digit growth rate [32] - The total telecom business volume reached 13,548 billion yuan, with a year-on-year growth of 10.7% [2][32] - The number of mobile internet users reached 1.57 billion, with a net increase of 45.49 million users since the end of the previous year [2][47] New Infrastructure Development - The number of 5G base stations reached 4.089 million, accounting for 32.4% of all mobile base stations, with a net increase of 712,000 from the previous year [2][38] - The number of broadband access ports reached 1.194 billion, with a net increase of 57.78 million since the end of the previous year [2][42] Emerging Business Growth - Emerging business revenue reached 325.2 billion yuan in the first three quarters of 2024, a year-on-year increase of 9.4%, accounting for 24.7% of total telecom revenue [2][14] - Cloud computing and big data revenues grew by 9.4% and 61.8% year-on-year, respectively [2][14] Investment Recommendations - The report suggests focusing on high-quality stocks in sub-sectors with improving marginal conditions, including companies like Zhongji Xuchuang, New Yisheng, and Huagong Technology [3]