Jangho(601886) Tianfeng Securities·2024-10-29 09:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [4][6]. Core Insights - The company has shown steady revenue growth, with a total revenue of 15.422 billion, representing a year-on-year increase of 9.26%. However, net profit was slightly pressured due to impairment losses, with a net profit of 433 million, up 8.55% year-on-year, while the non-recurring net profit decreased by 16.63% [1][4]. - The company is actively expanding its overseas business, particularly in the Middle East and Asia, with significant contracts won in these regions, including a 261 million contract for a project in Indonesia [2][4]. - The overall gross margin for the first three quarters of 2024 was 15.26%, a slight increase of 0.08 percentage points year-on-year, while the net profit margin improved to 3.44%, up 0.10 percentage points year-on-year [3][4]. Revenue and Profitability - For the first three quarters of 2024, the company achieved a revenue of 15.422 billion, with a quarterly revenue of 5.502 billion in Q3, reflecting a year-on-year growth of 4.47% [1][2]. - The company’s net profit for the first three quarters was 433 million, with a significant decline in non-recurring net profit in Q3, primarily due to increased credit impairment losses [1][3]. Business Development - The company has secured a total of 20.930 billion in contracts for its construction and decoration business in the first three quarters, marking an 8.80% increase year-on-year. The company is focusing on expanding its curtain wall and interior decoration systems, with notable growth in the latter [2][4]. - The company has initiated an "overseas" strategy for its curtain wall business, successfully entering markets in the Middle East and Asia, which is expected to drive future growth [2][4]. Financial Forecast - The company’s projected net profits for 2024 to 2026 are 727 million, 833 million, and 946 million respectively, with corresponding price-to-earnings ratios of 8.85, 7.73, and 6.80 [4][5].