ZPMC(SH:600320) HTSC·2024-10-31 07:55Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 5.25 [7][9]. Core Views - The company reported a 35.43% year-on-year increase in net profit attributable to shareholders for the first three quarters, with a total revenue of RMB 253.63 billion, reflecting a 12.67% year-on-year growth [1]. - The marine engineering market is showing signs of recovery, which supports the positive outlook for the company's performance [1]. - The company is recognized as a global leader in the port machinery industry, with its products sold in over 107 countries and regions, indicating strong international business expansion [3]. Financial Performance - For Q3, the company achieved a revenue of RMB 8.133 billion, down 10.65% year-on-year and 7.41% quarter-on-quarter, while net profit reached RMB 1.26 billion, up 218.01% year-on-year [1]. - The gross margin for the first three quarters was 12.38%, a slight decrease of 0.11 percentage points year-on-year, but Q3 saw a gross margin of 12.93%, an increase of 0.63 percentage points year-on-year [2]. - The company forecasts net profits for 2024-2026 to be RMB 8.3 billion, RMB 13.0 billion, and RMB 15.3 billion, with year-on-year growth rates of 60%, 56%, and 17% respectively [5]. Industry Positioning - The company is the largest manufacturer of heavy equipment for port machinery globally, continuously expanding its product sales and international presence [3]. - The company is innovating in line with industry trends towards high-end, green, and intelligent solutions, enhancing its competitiveness in the international market [4]. Valuation Metrics - The report estimates the company's earnings per share (EPS) for 2024, 2025, and 2026 to be RMB 0.16, RMB 0.25, and RMB 0.29 respectively, with corresponding price-to-earnings (PE) ratios of 25.81, 16.53, and 14.08 [6][5]. - The company's market capitalization is reported at RMB 21.495 billion, with a closing price of RMB 4.08 as of October 30 [9].