Sanlian Hope(300384) 民生证券·2024-10-29 08:30Investment Rating - The report maintains a "Recommend" rating for the company [3][4] Core Views - The company's performance in the first three quarters of 2024 showed steady growth with significant year-on-year increases in profitability [1] - The establishment of China Resources Recycling Group Corporation is expected to further promote the healthy and high-quality development of the domestic resource recycling industry, providing momentum for the company's recycling business [2] - The company's "primary + recycling" dual business lines are expected to drive future growth, with projected net profits of 346 million, 490 million, and 583 million yuan for 2024-2026, respectively [3] Financial Performance - In the first three quarters of 2024, the company achieved operating revenue of 939 million yuan, a year-on-year increase of 1.60%, and net profit attributable to the parent company of 261 million yuan, a year-on-year increase of 23.44% [1] - The gross profit margin was 43.02%, an increase of 3.30 percentage points year-on-year, and the net profit margin was 28.31%, an increase of 3.55 percentage points year-on-year [1] - For Q3 2024, the company achieved operating revenue of 297 million yuan, a year-on-year increase of 0.27%, and net profit attributable to the parent company of 87 million yuan, a year-on-year increase of 28.08% [1] Business Development - The company's chemical recycling technology achieved its first industrial success with the delivery of a chemical recycling nylon material project to a customer in Q2 2024 [2] - The company's subsidiary Polymetrix successfully completed and put into operation Asia's largest food-grade rPET project, with a contract value of approximately 266 million yuan [2] Financial Forecasts - The company's operating revenue is expected to grow from 1,250 million yuan in 2023 to 2,212 million yuan in 2026, with a compound annual growth rate of 17.2% [3][5] - Net profit attributable to the parent company is forecasted to increase from 290 million yuan in 2023 to 583 million yuan in 2026, with a compound annual growth rate of 19.0% [3][5] - The company's PE ratio is expected to decrease from 19 in 2023 to 9 in 2026, indicating potential undervaluation [3][6]