YINGLIU(SH:603308) SINOLINK SECURITIES·2024-10-30 06:55Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [3][10]. Core Views - The company reported a revenue of 1.91 billion RMB for the first three quarters of 2024, a year-on-year increase of 5.72%, while the net profit attributable to shareholders was 227 million RMB, a decrease of 6.90% [1]. - In Q3 2024, the company achieved a revenue of 642 million RMB, up 3.06% year-on-year, and a net profit of 75 million RMB, down 8.75% year-on-year, but up 22.95% quarter-on-quarter [1]. - The company has a significant order backlog of approximately 800 million RMB, with new orders of 400 million RMB signed in August and September 2024 alone, indicating strong future revenue growth potential [2]. - The company plans to issue convertible bonds to raise up to 1.5 billion RMB for expansion projects, which will enhance its core competitiveness in the aerospace and gas turbine components sector [2]. Summary by Sections Performance Review - For the first three quarters of 2024, the company achieved a revenue of 1.91 billion RMB, a 5.72% increase year-on-year, and a net profit of 227 million RMB, a 6.90% decrease year-on-year [1]. - In Q3 2024, the revenue was 642 million RMB, reflecting a 3.06% year-on-year increase and a 5.94% quarter-on-quarter increase, while the net profit was 75 million RMB, down 8.75% year-on-year but up 22.95% quarter-on-quarter [1]. Operational Analysis - The company has signed a significant number of new orders in Q3 2024, leading to a notable increase in contract liabilities, which reached 171 million RMB, an increase of 117 million RMB from the previous quarter [2]. - The company is involved in the localization of gas turbine components, with major clients including leading domestic and international firms, indicating a strong market position [2]. - The company is expected to benefit from a large market opportunity, with new gas turbine orders projected to exceed 137 billion USD over the next decade [2]. Profit Forecast and Valuation - Revenue projections for 2024-2026 are estimated at 2.764 billion RMB, 3.265 billion RMB, and 3.865 billion RMB, respectively, with net profits expected to be 390 million RMB, 468 million RMB, and 580 million RMB, respectively [3]. - The corresponding price-to-earnings ratios are projected to be 24, 20, and 16 times for the years 2024, 2025, and 2026 [3].