JSSMDL(603530) China Post Securities·2024-10-25 09:31Investment Rating - The investment rating for the company is "Add" [2] Core Views - The company reported a revenue of 900 million yuan for the first three quarters of 2024, representing a year-on-year increase of 33.1%, and a net profit attributable to shareholders of 220 million yuan, up 125.0% year-on-year. In Q3 2024, the revenue was 340 million yuan, with a year-on-year increase of 33.8% and a quarter-on-quarter increase of 7.4%. The net profit for Q3 was 70 million yuan, with a year-on-year increase of 65.7% but a quarter-on-quarter decrease of 3.7% [3][4] - The company has optimized its expense management, resulting in a gross margin of 44.4% and a net margin of 24.1% for the first three quarters of 2024, both showing significant year-on-year improvements. The sales expense ratio, management expense ratio, and R&D expense ratio have all decreased, contributing to enhanced profitability [3][4] - The upcoming COP29 conference is expected to elevate global climate ambitions, which may accelerate the upgrade and expansion of power grids. The company's products are positioned to reduce the lifecycle costs of power grids, suggesting continued benefits from this trend [3][4] Financial Forecasts - Revenue forecasts for the company are projected at 1.31 billion yuan for 2024, 1.80 billion yuan for 2025, and 2.53 billion yuan for 2026, with corresponding net profits of 300 million yuan, 410 million yuan, and 560 million yuan respectively. The price-to-earnings (PE) ratios are expected to be 35, 25, and 18 times for the respective years [4][6]