XREC(000598) 长江证券·2024-10-25 02:09Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company achieved a revenue of 2.205 billion yuan in Q3 2024, a slight decrease of 0.29% year-on-year, while the net profit attributable to the parent company was 698 million yuan, reflecting a year-on-year increase of 8.57% [3][4]. - The gross margin improved by 2.21 percentage points year-on-year to 47.8% in Q3 2024, attributed to fixed cost dilution from capacity ramp-up and an increase in sewage treatment service fees [3][4]. - The company reported a significant improvement in cash collection, with a cash collection ratio of 97.72% in Q3 2024, up 6.47 percentage points year-on-year [4]. - Operating cash flow for Q3 2024 was 1.170 billion yuan, representing a year-on-year growth of 25.4% [4]. Summary by Sections Revenue and Profitability - For the first three quarters of 2024, the company reported a total revenue of 6.213 billion yuan, up 9.17% year-on-year, and a net profit of 1.626 billion yuan, also up 9.14% year-on-year [3]. - The Q3 2024 net profit was 698 million yuan, with a non-deducted net profit of 692 million yuan, both showing year-on-year increases of 8.57% and 8.64% respectively [3]. Financial Performance - The financial expense ratio decreased to 3.76% in Q3 2024, down 0.28 percentage points year-on-year, indicating stable operational efficiency [4]. - The company’s credit impairment losses were significantly reduced, with Q3 2024 losses at 11 million yuan, down from 67.6 million yuan in the same period last year [4]. Future Growth Drivers - The company is set to benefit from an increase in sewage treatment service fees in Chengdu, which is expected to enhance revenue from its sewage treatment business [4]. - The company has ongoing and planned projects that will contribute to future capacity, including a total operational and under-construction water supply capacity of approximately 4.3 million tons per day and sewage treatment capacity of about 4.8 million tons per day [4]. Dividend Policy - The dividend payout ratio for 2023 was increased to 27.5%, up 6.86 percentage points from 2022, with an expected dividend yield of 2.48% for 2024 [4].