NEWLAND(000997) Haitong Securities·2024-10-28 03:15Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report highlights a 5.29% year-on-year decline in revenue for Q3, while the net profit attributable to shareholders increased by 13.91% year-on-year. For the first three quarters of 2024, the company achieved revenue of 5.573 billion yuan, a decrease of 5.27% year-on-year, and a net profit of 819 million yuan, which is a slight increase of 0.07% year-on-year [4] - The payment business saw a transaction volume of 15.5 trillion yuan in the first three quarters, down 19.7% year-on-year, primarily due to regulatory changes impacting the third-party payment industry. However, there are signs of recovery in consumer spending starting from September [4] - The company plans to distribute a mid-term dividend of 334 million yuan, with a cash dividend of 3.30 yuan per 10 shares [4] - The company is also planning a share buyback of 350 to 700 million yuan, with a buyback price not exceeding 24 yuan per share, representing a premium of 41% over the current stock price [4] - The company is focusing on digitalization, ecological development, and internationalization strategies to capitalize on domestic and overseas market opportunities [4] Financial Summary - The company forecasts revenues of 8.273 billion yuan, 9.103 billion yuan, and 10.038 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 0.3%, 10.0%, and 10.3% [5][6] - The net profit attributable to shareholders is projected to be 1.175 billion yuan, 1.431 billion yuan, and 1.683 billion yuan for the same years, with growth rates of 17.0%, 21.8%, and 17.6% respectively [5][6] - The earnings per share (EPS) are expected to be 1.14 yuan, 1.39 yuan, and 1.63 yuan for 2024, 2025, and 2026 respectively [5][6] - The company maintains a gross margin of 35.2% in 2023, projected to increase to 42.5% in 2024 and stabilize around 43.0% by 2026 [8] Valuation - The report suggests a dynamic price-to-earnings (PE) ratio of 21-23 times for 2025, with a reasonable value range for the stock between 29.19 yuan and 31.97 yuan [5][7]