Shanghai YanPu(605128) 华创证券·2024-10-24 07:40Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price range of 40.2 to 44.3 yuan [1]. Core Insights - The company achieved record high performance in Q3 2024, with revenue of 510 million yuan, a year-on-year increase of 28% and a quarter-on-quarter increase of 22%. The net profit attributable to the parent company reached 47 million yuan, up 46% year-on-year and 56% quarter-on-quarter, slightly exceeding the previous forecast of 45 million yuan [1]. - The revenue growth is attributed to the ramp-up of the railway container business and the release of high-quality skeleton projects. The production capacity utilization rate has rapidly increased due to new project accelerations [1]. - The net profit margin reached a three-year high at 9.1%, with a gross margin of 19.7%, benefiting from improved capacity utilization and cost control [1]. - New business projects are expected to sustain growth into 2025, with increasing orders for skeleton business and steady progress in high-speed rail seat projects [1]. - The company is positioned to achieve breakthroughs in industrial upgrades, aiming to expand from seat skeletons to complete seat assembly, leveraging its core technologies and new talent acquisitions [1]. Financial Summary - Total revenue for 2023 is projected at 1,519 million yuan, with expected growth rates of 35.4% in 2024, 45.3% in 2025, and 33.7% in 2026 [2]. - The net profit attributable to the parent company is forecasted to be 91 million yuan in 2023, with significant growth rates of 99.3% in 2024, 79.5% in 2025, and 45.6% in 2026 [2]. - Earnings per share (EPS) is expected to rise from 0.77 yuan in 2023 to 1.38 yuan in 2024, and further to 2.01 yuan in 2025 [2]. - The price-to-earnings (P/E) ratio is projected to decrease from 46 times in 2023 to 25 times in 2024, and further down to 18 times in 2025 [2].