YINLUN(002126) Orient Securities·2024-10-31 03:46Investment Rating - The report maintains a "Buy" rating for the company with a target price of 24.48 CNY [5][3] Core Insights - The company's performance meets expectations with a revenue of 9.205 billion CNY for the first three quarters, a year-on-year increase of 15.2%, and a net profit attributable to the parent company of 604 million CNY, up 36.2% year-on-year [2] - The third quarter saw a revenue of 3.054 billion CNY, a year-on-year increase of 11.8%, but a quarter-on-quarter decrease of 4.0% [2] - The company is experiencing a significant improvement in cash flow, with a net cash flow from operating activities of 884 million CNY, a year-on-year increase of 93.2% [2] - The digital energy business is expected to enter a growth phase, with major clients including North American companies and leading Chinese manufacturers [2] - The company is accelerating its overseas order acquisition, with expectations for improved profitability in its overseas operations [2] Financial Summary - Revenue projections for 2024-2026 are adjusted to 13.240 billion CNY, 15.843 billion CNY, and 19.092 billion CNY respectively, with corresponding EPS estimates of 1.02 CNY, 1.39 CNY, and 1.77 CNY [3][4] - The gross margin for the first three quarters is reported at 20.1%, with a third-quarter gross margin of 17.7% [2] - The net profit margin is projected to improve from 5.6% in 2023 to 7.7% in 2026 [4] - The company’s return on equity (ROE) is expected to rise from 12.1% in 2023 to 18.1% in 2026 [4]