NEWAY(SH:603699) Soochow Securities·2024-09-29 10:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's 2023 restricted stock incentive plan has been successfully implemented, with a total of 11.33 million shares granted at a price of 7.33 CNY per share to executives and key personnel [2] - The new management team, characterized by younger executives, is expected to drive long-term growth through high compensation and stock incentives, aligning their interests with the company's development [3] - The new management has revitalized operations, with significant order growth in various sectors, including oil and gas, marine engineering, and water treatment, indicating a robust expansion strategy [3] - The company is actively exploring international markets, particularly in the Middle East and Africa, with substantial order increases in these regions [3] - Profit forecasts for 2024-2026 are maintained at 9.5 billion, 12.0 billion, and 14.8 billion CNY respectively, with corresponding valuations of 16, 12, and 10 times earnings [3] Financial Projections - Total revenue is projected to grow from 5,544 million CNY in 2023 to 9,422 million CNY in 2026, reflecting a compound annual growth rate (CAGR) of approximately 17.95% [1][8] - Net profit attributable to shareholders is expected to increase from 721.80 million CNY in 2023 to 1,479.99 million CNY in 2026, with a CAGR of about 23.64% [1][8] - The earnings per share (EPS) is forecasted to rise from 0.95 CNY in 2023 to 1.95 CNY in 2026 [1][8] Market Data - The closing price of the stock is 19.54 CNY, with a market capitalization of approximately 14.87 billion CNY [4] - The stock has a price-to-earnings (P/E) ratio of 20.60 based on the latest diluted EPS [9]