ZMJ(601717) 西南证券·2024-10-30 05:11Investment Rating - The report maintains a "Buy" rating for Zheng Coal Machinery (601717) [1] Core Views - The company's profitability continues to improve, with profit growth exceeding expectations. For the first three quarters of 2024, the company achieved operating revenue of 27.84 billion yuan, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 3.06 billion yuan, a year-on-year increase of 24.0% [1][2] - The coal machinery segment is the main contributor to profit growth, with revenue of 14.53 billion yuan, up 2.5% year-on-year, and net profit of 3.14 billion yuan, up 25.9% year-on-year. The growth is attributed to product structure optimization and a decrease in material costs [2] - The automotive parts transformation is progressing, with revenue of 13.32 billion yuan, up 1.8% year-on-year, and a significant improvement in profitability. The company is focusing on expanding its presence in the passenger vehicle market and accelerating the electrification transformation of its automotive parts segment [3] Summary by Sections Financial Performance - For Q1-Q3 2024, the company reported operating revenue of 27.84 billion yuan, with a net profit of 3.06 billion yuan. The Q3 revenue was 8.90 billion yuan, down 1.5% year-on-year, while net profit was 0.90 billion yuan, up 14.1% year-on-year. The company maintained a good expense control with a period expense ratio of 10.6% [1][3] - The gross margin for Q1-Q3 was 24.0%, up 2.2 percentage points year-on-year, and the net profit margin was 11.9%, also up 2.2 percentage points year-on-year [1] Segment Analysis - The coal machinery segment's revenue and profit growth are driven by high-margin products and a stable increase in overall revenue. The intelligent control systems for coal mining are leading in the market, contributing to the industry's transformation and high-quality development [2] - The automotive parts segment saw revenue growth driven by the rapid increase in shock absorber sealing systems, with a focus on expanding into the new energy vehicle market, which is experiencing significant growth [3] Profit Forecast and Investment Suggestion - The company is expected to achieve net profits of 3.87 billion yuan, 4.20 billion yuan, and 4.56 billion yuan for 2024, 2025, and 2026, respectively, with a projected compound annual growth rate of 12% in net profit over the next three years. The current price-to-earnings ratios are 6.2, 5.7, and 5.3 for the respective years [3][5]