WHEE(SH:600475) SINOLINK SECURITIES·2024-10-31 03:08Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company's short-term performance is under pressure due to a decline in power station engineering business, but there is potential for growth in hydrogen energy and flexible coal-fired power generation [3] - The company reported a revenue of 7.233 billion yuan for the first three quarters of 2024, a year-on-year decrease of 6.1%, and a net profit attributable to shareholders of 481 million yuan, down 6.6% year-on-year [3] - The third quarter saw a significant revenue drop of 45.6% year-on-year, primarily due to fluctuations in photovoltaic component prices and challenges in renewable energy consumption [3] - The company is actively expanding its hydrogen energy business and has secured significant orders, including a major green hydrogen project [3] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 1.474 billion yuan and a net profit of 84 million yuan, reflecting a year-on-year decline of 45.6% and 20.4% respectively [3] - The decline in revenue is attributed to the downturn in photovoltaic power station engineering and the impact of production capacity relocation on equipment manufacturing [3] - The company expects net profits of 760 million, 840 million, and 880 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.81, 0.89, and 0.94 yuan [3] Business Development - The company is positioned as a leading player in the environmental energy sector, focusing on flexible coal-fired power generation and electrolysis hydrogen production equipment [3] - The current scale of green hydrogen projects has reached 921,000 tons, with approximately 881 sets of electrolyzers expected to be tendered in the near future [3] - The company is collaborating with research institutions to develop advanced combustion technologies, enhancing its market offerings in flexible coal-fired power generation [3]