SIEYUAN(002028) Tai Ping Yang·2024-10-29 00:43Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 74.16 [1][10]. Core Insights - The company has shown continuous high growth in performance, with a significant increase in revenue and net profit for the first three quarters of 2024. Revenue reached 10.41 billion, up 21.3% year-on-year, while net profit was 1.49 billion, up 29.9% year-on-year [2][3]. - The company has a strong order backlog, indicated by the growth in advance payments and contract liabilities, which increased by 68.9% and 50.7% respectively compared to the beginning of the year [3]. - The company is actively investing in capacity expansion and new product development, with a notable increase in construction projects and plans to establish a new GIS production base in Jiangsu Province [4]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 4.24 billion, a year-on-year increase of 29.4% and a quarter-on-quarter increase of 20.9%. The net profit for Q3 was 592 million, up 32.1% year-on-year and 12.9% quarter-on-quarter [2][3]. Profitability - The gross margin and net margin for the first three quarters of 2024 were 31.4% and 14.6%, respectively, showing improvements compared to the previous year [3]. Capacity and Product Development - The company has significantly increased its investment in new products, particularly in medium-voltage switches and high-voltage GIS, with construction projects growing by 327.8% since the beginning of the year [4]. Revenue and Profit Forecast - The company is expected to achieve a revenue growth of 20% and an order growth of 25% for the full year 2024. Revenue projections for 2024-2026 are 16.56 billion, 20.48 billion, and 25.15 billion, with corresponding net profits of 2.13 billion, 2.61 billion, and 3.24 billion [5].