NEWLAND(000997) Minsheng Securities·2024-10-27 09:01Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for future performance [2][4]. Core Insights - The company reported a resilient performance with a net profit of 819 million yuan for the first three quarters of 2024, reflecting a slight year-on-year increase of 0.07%. However, the non-recurring net profit decreased by 7.75% to 822 million yuan [2]. - In Q3 2024, the company achieved a net profit of 289 million yuan, marking a year-on-year growth of 13.91%, while the non-recurring net profit fell by 11.56% to 260 million yuan. The revenue for Q3 was 1.937 billion yuan, down 5.29% year-on-year, primarily due to regulatory impacts on the third-party payment industry [2]. - The company's overseas business is steadily developing, with a significant increase in the shipment of smart POS devices, which accounted for over 39% of total overseas shipments [2]. - The management announced a substantial share buyback plan, intending to repurchase shares at a price not exceeding 24 yuan per share, using 350 to 700 million yuan. Additionally, a cash dividend of 3.30 yuan per 10 shares is planned, totaling 334 million yuan [2]. - Future profit forecasts for the company are optimistic, with expected net profits of 1.115 billion yuan, 1.315 billion yuan, and 1.460 billion yuan for 2024, 2025, and 2026 respectively. The current market capitalization corresponds to price-to-earnings ratios of 16, 13, and 12 for the respective years [2]. Financial Summary - For the first three quarters of 2024, the company reported total revenue of 8.25 billion yuan, with a growth rate of 11.9% in 2023. The net profit attributable to shareholders was 1.004 billion yuan, showing a significant growth rate of 362.9% [3][5]. - The company's earnings per share (EPS) is projected to increase from 0.97 yuan in 2023 to 1.41 yuan in 2026, reflecting a positive growth trajectory [6]. - The company's financial health is indicated by a projected return on equity (ROE) of 15.69% in 2023, expected to slightly decrease to 15.55% in 2024, before rising to 16.32% in 2026 [5][6].