ZMJ(SH:601717) Haitong Securities·2024-10-31 04:14Investment Rating - The investment rating for Zhengmei Machine (601717) is "Outperform the Market" [2] Core Views - The report highlights that the coal machinery business is experiencing a high level of profitability, while the automotive parts segment is undergoing a transition towards new energy [6][8] - The company achieved a revenue of 27.84 billion yuan in Q3 2024, with a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 3.06 billion yuan, up 24% year-on-year [6] - The coal machinery segment's revenue and net profit in Q3 2024 were 4.72 billion yuan and 980 million yuan, respectively, showing a year-on-year decrease in revenue but an increase in net profit [6] - The automotive parts segment's revenue in Q3 2024 was 1.19 billion yuan, with a significant decline in net profit, attributed to the ongoing transition to new energy [7] Summary by Sections Financial Performance - In Q3 2024, the company reported a net profit of 900 million yuan, with a year-on-year increase of 14.1% but a quarter-on-quarter decrease of 17.2% [6] - The total revenue for the first three quarters of 2024 was 27.84 billion yuan, with a net profit of 3.06 billion yuan, reflecting a year-on-year growth of 24% [6][9] Business Segments - Coal Machinery Segment: In Q3 2024, the segment's revenue was 4.72 billion yuan, with a net profit of 980 million yuan, indicating a year-on-year decrease in revenue but an increase in net profit [6] - Automotive Parts Segment: The segment's revenue for Q3 2024 was 1.19 billion yuan, with a drastic decline in net profit, primarily due to the impact of the new energy transition [7] Investment Outlook - The report projects that the company's net profit attributable to shareholders will reach 3.73 billion yuan in 2024, with an estimated EPS of 2.09 yuan [8][12] - The valuation is based on a PE ratio of 9-10 times for 2024, suggesting a reasonable value range of 18.81 to 20.9 yuan per share [8]