SUMEC(SH:600710) Southwest Securities·2024-10-25 11:03Investment Rating - The report suggests a "Hold" rating for the company, indicating that the stock is expected to perform in line with the market over the next six months [12]. Core Views - The company achieved a revenue of 869.4 billion yuan in the first three quarters of 2024, a decrease of 9.5% year-on-year, while the net profit attributable to shareholders increased by 12% to 1 billion yuan [1][5]. - The company is expanding its product offerings and improving its supply chain business layout, focusing on high-growth and high-margin categories such as grains, pulp, and new energy materials [1][5]. - The company is a leading supply chain operator in China, with a compound annual growth rate (CAGR) of over 26% in its industrial chain segment over the past three years, and the profit contribution from this segment increased from 53% in 2021 to 63% in 2023 [1][5]. - The company is leading in the construction of green energy vessels, with a backlog of 84 ships as of September 2024, and has received orders for 31 new vessels [1][5]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 310.1 billion yuan and a net profit of 4.3 billion yuan, reflecting an 11.9% year-on-year growth in net profit [1]. - The company expects its industrial chain business to grow by 6.3%, 6%, and 6.9% in 2024, 2025, and 2026, respectively, with gross margins improving to 18%, 18.8%, and 19.4% [5][6]. Business Strategy - The company is implementing a diversified development strategy, focusing on the integration of industry and finance, and aims to fill key gaps in its existing industrial chain through investments [2][5]. - The supply chain business is expected to stabilize, with projected revenue changes of -12%, +8%, and +10% over the next three years [5][6]. Market Position - The company ranks 97th in the 2023 Fortune China 500 list, highlighting its significant market presence [1]. - The company is actively seizing opportunities in strategic emerging industries such as clean energy and ecological protection [1].