SANXING(601567) Tai Ping Yang·2024-10-29 00:43Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [8]. Core Insights - The company reported a rapid growth in performance, with a revenue of 10.434 billion and a year-on-year increase of 25.14% for the first three quarters of 2024. The net profit attributable to shareholders reached 1.816 billion, up 21.91% year-on-year [2]. - The gross margin reached a recent high of 36.21% for the first three quarters of 2024, reflecting a year-on-year increase of 2.59 percentage points, while the net margin was 17.47%, down 0.51 percentage points year-on-year [2]. - The company has a strong order backlog of 15.620 billion, with a year-on-year increase of 35.18%, indicating robust demand and growth potential [2]. Financial Performance Summary - For Q3 2024, the company reported a revenue of 3.436 billion, a year-on-year increase of 23.21%, but a quarter-on-quarter decrease of 13.50%. The net profit attributable to shareholders was 666 million, up 7.43% year-on-year, but down 15.28% quarter-on-quarter [2]. - The company’s gross margin for Q3 2024 was 39.48%, a year-on-year increase of 0.89 percentage points and a quarter-on-quarter increase of 2.27 percentage points [2]. - The net profit margin for Q3 2024 was 22.34%, down 2.98 percentage points year-on-year and down 0.42 percentage points quarter-on-quarter [2]. Future Projections - The company is expected to achieve revenues of 14.567 billion, 17.796 billion, and 20.933 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 27.09%, 22.16%, and 17.63% [3]. - The net profit attributable to shareholders is projected to be 2.306 billion, 2.806 billion, and 3.334 billion for the same years, with growth rates of 21.13%, 21.68%, and 18.83% [3]. - The earnings per share (EPS) are expected to be 1.63, 1.99, and 2.36 for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 20, 16, and 14 [3].