CRSC(SH:688009)2024-10-28 06:39Investment Rating - The report maintains a "Recommended" rating for China Communications Signal and Control Technology Co., Ltd. (stock code: 688009.SH) [2][4] Core Views - The company reported a revenue of 20.94 billion yuan for the first three quarters of 2024, a year-on-year decrease of 15.17%. The net profit attributable to shareholders was 2.36 billion yuan, down 8.09% year-on-year [4] - In Q3, the net profit attributable to shareholders showed a positive year-on-year growth. The railway and overseas business continued to grow, with railway revenue at 12.03 billion yuan, up 2.19% year-on-year, and overseas revenue at 1.77 billion yuan, up 65.90% year-on-year [4] - The company is focusing on its core business, with a significant reduction in municipal and construction business, which saw a revenue decline of 67.76% year-on-year [4] - The company signed new contracts worth 29.13 billion yuan in the first three quarters, a year-on-year decrease of 42.76%. The railway new contracts remained stable at 14.63 billion yuan, up 1.09% year-on-year, while overseas contracts increased significantly by 95.39% to 3.91 billion yuan [4] Financial Performance Summary - The company's gross margin for the first three quarters was 30.06%, an increase of 4.73 percentage points year-on-year, and the net margin was 13.08%, up 1.10 percentage points year-on-year [4] - The report forecasts the company will achieve net profits of 3.53 billion yuan, 3.80 billion yuan, and 4.33 billion yuan for the years 2024, 2025, and 2026 respectively, indicating a continuous improvement in profitability [4][7] - The projected EPS for 2024, 2025, and 2026 is expected to be 0.33 yuan, 0.36 yuan, and 0.41 yuan respectively, with corresponding PE ratios of 18.69, 17.39, and 15.23 [7][11]