Sunrise(300360)2024-10-25 10:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 24.30 based on a PE of 18X for 2024 [4][10]. Core Insights - The company experienced rapid growth in Q3 2024, with revenue increasing by 34.86% year-on-year and net profit attributable to shareholders rising by 48.75% [9][10]. - The smart meter industry is in an upgrade and replacement phase, with the State Grid's bidding volume for smart meters expected to increase by 25% year-on-year in 2024, indicating strong market demand [2][10]. - The company is leveraging its position as a major supplier to the State Grid and Southern Grid, while also expanding its overseas market presence in smart metering and collection systems [2][10]. Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved revenue of RMB 1.55 billion, a year-on-year increase of 23.85%, and a net profit of RMB 542 million, up 22.47% [9][10]. - The gross profit margin for the first three quarters was 47.96%, an increase of 4.09 percentage points year-on-year [9]. - The period expense rate decreased to 6.96%, with reductions in sales, management, and financial expense rates [9][10]. Quarterly Analysis - For Q3 2024, revenue was RMB 531 million, reflecting a 34.86% year-on-year growth, while the gross profit margin was 48.36% [9][10]. - The net profit for Q3 was RMB 201 million, marking a 48.75% increase year-on-year, attributed to a rise in gross profit margin and a decrease in period expense rate [9][10]. Future Projections - The company forecasts net profits of RMB 696 million, RMB 800 million, and RMB 921 million for 2024, 2025, and 2026 respectively, with corresponding EPS of RMB 1.35, RMB 1.56, and RMB 1.79 [4][10]. - Revenue projections for the next three years are RMB 2.06 billion in 2024, RMB 2.35 billion in 2025, and RMB 2.69 billion in 2026, with expected growth rates of 16.5% and 14.1% in subsequent years [3][4][10].