Western Venture(SZ:000557) Tai Ping Yang·2024-10-09 00:30Investment Rating - The report assigns a rating of "Accumulate" for the company [4] Core Views - The company reported a total revenue of 649 million, a year-on-year decrease of 7.96%, while the net profit attributable to shareholders increased by 23.1% to 156 million [3] - The decline in revenue is primarily attributed to a 91.8% decrease in the supply chain trade service segment, while the core railway transportation business saw a revenue increase of 9.5% [3] - The railway transportation segment contributes approximately 98% to the company's revenue and gross profit, with a gross margin of about 32% [3] - Future improvements are expected from the electrification of the Ningdong Railway, which is projected to enhance capacity by 10% [4] - The company is also planning to increase investment in the southern Ordos railway, which is anticipated to generate additional revenue [4] - The company is expected to benefit from the recent shift in market sentiment and the national policy of Western Development [4] Financial Summary - For the 2024 forecast, total revenue is expected to be 16.65 billion, with a year-on-year decrease of 14.4% [6] - The net profit attributable to shareholders is projected to be 2.42 billion, reflecting a year-on-year increase of 27.8% [6] - The diluted earnings per share (EPS) is forecasted to be 0.17, with a price-to-earnings (PE) ratio of 26.53 [6] - The company’s gross margin is expected to improve to 14.98% by 2024 [6] - The return on equity (ROE) is projected to increase to 5.23% by 2024 [6]