SIEYUAN(002028) Southwest Securities·2024-10-30 06:58Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [1][3]. Core Views - The company has reported a slight revenue and profit increase in Q3 2024, with total revenue reaching 10.41 billion yuan, a year-on-year growth of 21.3%, and a net profit attributable to shareholders of 1.49 billion yuan, up 29.9% year-on-year [1]. - The company is experiencing rapid growth in overseas markets, particularly in transformer demand driven by global renewable energy developments [3]. - The company plans to invest 300 million yuan in expanding its GIS production capacity, which is expected to enhance its market competitiveness and support future revenue growth [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 10.41 billion yuan, a 21.3% increase year-on-year, and a net profit of 1.49 billion yuan, up 29.9% [1]. - In Q3 2024 alone, revenue was 4.24 billion yuan, reflecting a 29.4% year-on-year growth, with a net profit of 600 million yuan, a 35% increase [1]. Profitability Metrics - The gross margin for the first three quarters of 2024 was 31.4%, an increase of 1.3 percentage points year-on-year, while the net margin was 14.6%, up 0.8 percentage points [2]. - The company’s Q3 2024 gross margin was 31%, down 0.8 percentage points year-on-year, but the net margin improved to 14.7%, up 0.6 percentage points [2]. Capacity Expansion and Market Opportunities - The company announced plans for a 300 million yuan investment in a new GIS production facility, expected to be completed within 12 months, which will support future sales growth [2]. - The demand for transformers in overseas markets is expected to remain strong, with the company benefiting from a significant portion of its orders coming from international markets [3]. Revenue and Profit Forecast - Revenue projections for 2024-2026 are 16.01 billion yuan, 19.35 billion yuan, and 22.78 billion yuan, respectively, with net profit growth rates of 33.9%, 25%, and 19.1% [3].