SPG(600529) Tianfeng Securities·2024-10-29 07:16Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 32.54 CNY, reflecting a 21x PE for 2024 [4][6]. Core Views - The company achieved a net profit of 245 million CNY in Q3, marking a year-on-year increase of 7.23%. For the first three quarters, the revenue and net profit reached 382.5 million CNY and 72 million CNY, respectively, with year-on-year growth of 4.12% and 17.29% [1]. - The report highlights that the company's net profit margin continues to grow, reaching a historical high of 19.80% in Q3, up 1.52 percentage points year-on-year [2]. - The company is expected to maintain high growth due to increasing demand in the downstream market and favorable raw material prices, which are anticipated to enhance profitability further [4]. Financial Performance Summary - In Q3, the company reported a revenue of 1.239 billion CNY, a decrease of 0.99% year-on-year, while the net profit for the same period was 245 million CNY, an increase of 7.23% year-on-year [1]. - The overall gross margin for the first three quarters was 32.10%, up 3.89 percentage points year-on-year, with Q3 gross margin at 31.58% [2]. - The company's asset-liability ratio increased to 21.96%, up 3.73 percentage points year-on-year, while operating cash flow improved to 813 million CNY, an increase of 86 million CNY year-on-year [3]. Earnings Forecast - The company is projected to achieve net profits of 1.03 billion CNY, 1.27 billion CNY, and 1.50 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 32.54%, 23.12%, and 18.17% [5][10]. - The report anticipates a steady increase in revenue, forecasting 5.91 billion CNY in 2024, 6.82 billion CNY in 2025, and 7.75 billion CNY in 2026, with corresponding growth rates of 18.65%, 15.40%, and 13.58% [5][12].