BURTC(600861) 国信证券·2024-10-29 10:41Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][8] Core Views - The company has shown significant improvement in profitability, with a 85% year-on-year increase in net profit for Q3 2024, indicating a strong recovery [3][5] - Revenue for the first three quarters of 2024 reached 33.18 billion yuan, reflecting a 15% increase compared to the previous year [3][5] - The company is focusing on internal cost reduction and efficiency improvements, which have positively impacted its profitability margins [3][5][7] Financial Forecasts and Key Metrics - Revenue projections for 2024-2026 have been adjusted to 44.9 billion, 52.4 billion, and 61.2 billion yuan respectively, with corresponding net profit estimates of 857 million, 976 million, and 1.099 billion yuan [3][8] - The earnings per share (EPS) are forecasted to be 1.51 yuan in 2024, 1.72 yuan in 2025, and 1.94 yuan in 2026 [3][9] - The company’s price-to-earnings (P/E) ratio is projected to decrease from 12.4 in 2024 to 9.7 in 2026, indicating improving valuation attractiveness [3][9] Operational Highlights - The company’s subsidiary, Beijing Foreign Enterprise (FESCO), achieved a revenue of 33.15 billion yuan in the first three quarters of 2024, with a net profit of 6.5 billion yuan [3][5] - The gross profit margin for the company was reported at 5.7%, with a slight decrease attributed to the increased proportion of outsourcing services [3][5][7] - The establishment of a joint venture focused on AI recruitment aims to enhance operational efficiency and streamline management structures [3][7][8]