Hainan Jinpan Smart Technology (SH:688676) Southwest Securities·2024-10-23 03:00Investment Rating - The report maintains a "Hold" rating for the company [1]. Core Views - The company achieved a revenue of 1.88 billion yuan in Q3 2024, a year-on-year increase of 0.2%, and a net profit attributable to shareholders of 180 million yuan, up 27.5% year-on-year [1]. - The gross profit margin and net profit margin have improved, with the gross margin at 24.2% and net margin at 8.3% for the first three quarters of 2024, reflecting an increase of 2.0 percentage points and 1.4 percentage points respectively [1]. - The company is focusing on enhancing shareholder returns and plans to distribute more than 40% of its distributable profits in cash for the year 2024 [1]. Financial Performance Summary - For the first nine months of 2024, the company reported cumulative revenue of 4.8 billion yuan, a 0.5% increase year-on-year, and a net profit of 400 million yuan, up 21.2% year-on-year [1]. - The company’s cash flow from operating activities improved, with a net cash flow of -90 million yuan, an increase of 150 million yuan year-on-year [1]. - The company’s external sales revenue reached 1.37 billion yuan, accounting for 28.6% of total revenue, showing an increase from 27% in the previous half [2]. Growth Projections - Revenue projections for 2024-2026 are estimated at 7.18 billion yuan, 9.06 billion yuan, and 10.77 billion yuan respectively, with net profit growth rates of 22.4%, 39.1%, and 18.9% [2]. - The company is expected to benefit from the sustainable demand for transformers in overseas markets, particularly in Europe and the US, as it expands its production capacity [2]. - The company is actively pursuing digital transformation and expanding its energy storage business, which is anticipated to contribute to stable growth in performance [2].