YDC(SH:605555) GOLDEN SUN SECURITIES·2024-10-29 00:10Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has experienced significant revenue growth driven by the ramp-up of new projects, with a year-on-year revenue increase of 40.33% to 2.987 billion yuan for the first three quarters of 2024 [1]. - Despite the revenue growth, the profit margins have declined due to foreign exchange pressures, with the net profit for the first three quarters of 2024 increasing by only 14.50% to 302 million yuan [1]. - The gross margin has decreased, with a year-on-year drop of 0.75 percentage points to 17.58% for the first three quarters of 2024 [2]. - The company expects net profits for 2024-2026 to grow at rates of 25.5%, 24.2%, and 22.8% respectively, indicating a positive outlook [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.987 billion yuan, with a quarterly revenue of 1.124 billion yuan in Q3, reflecting a 42.99% year-on-year increase [1]. - The net profit for Q3 2024 was 94 million yuan, a 2.78% increase year-on-year, while the net profit excluding foreign exchange effects was 107 million yuan, up 15.43% [1]. - The company’s projected revenues for 2024, 2025, and 2026 are 3.83 billion yuan, 4.65 billion yuan, and 5.57 billion yuan respectively, with corresponding growth rates of 38.0%, 21.4%, and 19.9% [3]. Profitability Metrics - The net profit margin for the first three quarters of 2024 decreased by 2.28 percentage points to 10.10% [2]. - The company’s earnings per share (EPS) for 2024 is projected to be 1.09 yuan, with a P/E ratio of 18.3 [3]. - The return on equity (ROE) is expected to improve from 11.8% in 2022 to 16.9% by 2026 [3].