SUMEC(SH:600710) Soochow Securities·2024-10-25 04:00Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a 27% year-on-year increase in net profit excluding non-recurring items for Q3 2024, indicating strong performance in the industrial chain segment and a potential recovery in the supply chain [2] - The industrial chain business is the main driver of the company's performance, with approximately 80% of revenue coming from the supply chain but over 60% of profits generated from the industrial chain [2] - The company has shown a narrowing decline in revenue growth rate in Q3 2024, suggesting a recovery in the supply chain business, which is closely linked to domestic demand [2] - The company has a high dividend yield, with a payout ratio exceeding 40% from 2021 to 2023, and is recognized as a benchmark for employee stock ownership in state-owned enterprises [2] - The profit forecast for 2024-2026 has been slightly adjusted upwards, with expected net profits of 11.5 billion, 12.3 billion, and 13.0 billion respectively, reflecting a year-on-year growth of 12%, 7%, and 5% [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 86.9 billion, down 9.5% year-on-year, while the net profit attributable to shareholders was 1.0 billion, up 11.8% year-on-year [2] - In Q3 2024, the company reported a revenue of 31.0 billion, a decrease of 1.7% year-on-year, with a net profit of 4.3 billion, an increase of 12.5% year-on-year [2] - The gross margin and net profit margin for Q3 2024 were 6.73% and 3.25%, respectively, showing improvements compared to the previous year [2] - The company's total revenue for 2024 is projected to be 114.1 billion, with a year-on-year decline of 7.23%, followed by a recovery in 2025 and 2026 [2][9]