Warom Incorporated(603855) 华鑫证券·2024-10-31 08:01Investment Rating - The report maintains a "Buy" rating for Huarong Co Ltd (603855 SH) [3][6] Core Views - Huarong Co Ltd benefits from stable demand for explosion-proof electrical appliances and is expanding its global market presence [3] - The company's new energy business is driving high revenue growth [3] - With a domestic market share exceeding 30% in explosion-proof products, the company is well-positioned to capitalize on industry consolidation [4] Financial Performance - Q3 2024 revenue reached 2 45 billion yuan, up 19 67% YoY [4] - Net profit attributable to shareholders was 321 million yuan, a 6 62% YoY increase [4] - Single Q3 revenue grew 43 61% YoY to 1 048 billion yuan [5] - Q3 net profit rose 14 07% YoY to 121 million yuan [5] Market Outlook - Global explosion-proof electrical equipment market is expected to grow from 49 67 billion yuan in 2023 to 64 39 billion yuan by 2030, with a CAGR of 3 78% [5] - The company is actively expanding in Middle East, Southeast Asia, and European markets [5] Financial Projections - 2024-2026 revenue forecast: 3 898 billion, 4 369 billion, and 4 906 billion yuan respectively [6] - 2024-2026 EPS forecast: 1 50, 1 79, and 2 13 yuan respectively [6] - Current PE ratios: 14x (2024), 12x (2025), 10x (2026) [6] Operational Highlights - Sales expense ratio decreased by 5 percentage points YoY in Q3 [5] - R&D expenses remained stable while management and financial expenses increased slightly [5] - The company maintains strong relationships with major global energy companies including Sinopec, Shell, BP, and Saudi Aramco [5]