BGE(603588) Soochow Securities·2024-10-27 19:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 11.451 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 52.88%. However, the net profit attributable to shareholders decreased by 14.69% to 561 million yuan [2][3] - The decline in performance is attributed to a decrease in revenue from the engineering segment and the impact of resource pricing on profitability. The company experienced a significant drop in non-recurring net profit in the third quarter, down 63.28% year-on-year [2] - The company anticipates a turning point in the resource segment's project operations, leading to improved performance in the coming years [2] Financial Performance Summary - For 2024, the company forecasts a net profit of 929.16 million yuan, an increase of 84.12% year-on-year, with projected P/E ratios of 8.59, 7.22, and 6.21 for 2024, 2025, and 2026 respectively [2][3] - The company's gross profit margin and net profit margin for the first three quarters of 2024 were 13.95% and 5.66%, respectively, both showing a decline compared to the previous year [2] - Operating cash flow for the first three quarters was 219 million yuan, an increase of 118.31% year-on-year, indicating strong cash flow performance despite the profit decline [2] Expense Analysis - Total operating expenses increased by 21.17% to 1.022 billion yuan, with R&D expenses rising by 64.14% [2] - The report highlights a decrease in sales and management expenses, while R&D and financial expenses saw significant increases [2] Market Data - The company's closing price is 5.20 yuan, with a market capitalization of approximately 7.98 billion yuan [5] - The company has a price-to-book ratio of 0.83 and a debt-to-asset ratio of 62.55% [6]