中国动力：三季报业绩高增，盈利能力稳步提升

Investment Rating - The report maintains an "Accumulate" rating for the company [1]. Core Views - The company reported significant growth in its Q3 2024 earnings, with a revenue of 36.62 billion yuan, representing a year-on-year increase of 12.84%, and a net profit attributable to shareholders of 743 million yuan, up 80.49% year-on-year [1]. - The increase in profitability is attributed to higher delivery orders from the diesel engine subsidiary, rising prices of low-speed diesel engines, and an expanded sales scale of marine machinery [1]. - The company plans to acquire a 16.51% stake in China Shipbuilding Diesel Engine, which will increase its ownership to 68.36%, enhancing its integration and decision-making capabilities in the diesel engine business [2]. - The company has made rapid advancements in dual-fuel engine technology, which is expected to improve its order-taking capabilities in the future [2]. Summary by Sections Performance Analysis - In Q3 2024, the company achieved a revenue of 11.76 billion yuan, a year-on-year increase of 5.57%, and a net profit of 268 million yuan, up 114.40% year-on-year [1]. - The gross profit margin has been steadily increasing, reaching 14.87% in Q3 2024, an increase of 4.22 and 2.03 percentage points compared to Q1 and Q2 respectively [1]. Financial Forecast - The company is projected to achieve revenues of 52.64 billion yuan, 61.10 billion yuan, and 70.88 billion yuan for the years 2024, 2025, and 2026 respectively, with net profits of 1.15 billion yuan, 1.94 billion yuan, and 2.98 billion yuan [2]. - The corresponding price-to-earnings ratios (PE) are expected to be 45, 27, and 18 times for the same years [2]. Strategic Developments - The acquisition of the additional stake in China Shipbuilding Diesel Engine is expected to enhance the company's profitability, as the diesel power business has a relatively high gross margin of 14.71% in the first half of 2024 [2]. - The company has successfully delivered large-bore LNG dual-fuel marine low-speed engines, marking a significant breakthrough in the green ship engine manufacturing sector [2].