Linyang Energy(601222) 国金证券·2024-10-31 00:00Investment Rating - The investment rating for Linyang Energy is "Buy" with a maintained rating [1]. Core Views - The company reported a revenue of 5.17 billion RMB for the first three quarters of 2024, representing a year-on-year growth of 8.8%. The net profit attributable to shareholders was 910 million RMB, up 7.0% year-on-year [1]. - The company has a strong order backlog in its electric meter business, with domestic orders from State Grid and Southern Grid amounting to approximately 800 million RMB, and an expected new order of 150 million RMB in Q3 [1]. - The company is accelerating the construction and grid connection of its renewable energy power stations, with a self-owned power station capacity of approximately 1.34 GW as of Q3 2024 [1]. - The energy storage business is progressing steadily, with multiple projects completed and a joint venture factory in Saudi Arabia expected to start production in Q4 [1]. - The profit forecast for 2024-2026 is set at 1.22 billion, 1.42 billion, and 1.65 billion RMB, corresponding to PE ratios of 12, 10, and 9 times, respectively [1]. Summary by Sections Performance Analysis - In Q3 2024, the company achieved a revenue of 1.70 billion RMB, a year-on-year increase of 10.6%, but a quarter-on-quarter decrease of 10.8%. The net profit for Q3 was 310 million RMB, up 15.4% year-on-year, but down 18.2% quarter-on-quarter [1]. Business Operations - The overseas expansion of the electric meter business is progressing well, with a total of 806 million RMB in overseas orders for the year. A joint venture factory in Jeddah is expected to commence production in Q4 [1]. - The company has a high proportion of quality assets in its renewable energy power stations, with projects primarily located in regions with good power consumption conditions [1]. - The energy storage business is advancing, with several projects completed and a new factory expected to enhance overseas business [1]. Financial Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 1.22 billion, 1.42 billion, and 1.65 billion RMB, with corresponding PE ratios of 12, 10, and 9 times. The "Buy" rating is maintained based on these projections [1].