QINGDA ENVIRONMENT(688501) 国泰君安·2024-10-31 08:12Investment Rating - Maintains "Overweight" rating with a target price of 29.48 RMB [3][5] Core Views - The company's orders have increased year-on-year, driving a 64% YoY growth in net profit for the first three quarters of 2024 [2][3] - The company is actively expanding into non-power sectors such as steel, metallurgy, chemical, and new energy, with a focus on hydrogen production projects [3] - The company's revenue is expected to grow steadily due to the upcoming delivery of a photovoltaic hydrogen production project [2][3] Financial Performance - 2024 Q3 revenue reached 255 million RMB, a 60% YoY increase, with net profit attributable to shareholders of 9.83 million RMB, up 27% YoY [3] - 2024E revenue is projected to be 1.427 billion RMB, a 38.6% YoY increase, with net profit attributable to shareholders of 140 million RMB, up 61.9% YoY [4] - EPS for 2024E is forecasted at 1.14 RMB, increasing to 1.78 RMB in 2025E and 1.91 RMB in 2026E [3][4] Strategic Developments - The company plans to raise 150 million RMB through a private placement to its controlling shareholder and chairman, demonstrating management's confidence in the company's growth [3] - The company is constructing a 120 MW fishing and photovoltaic complementary project in Jiaozhou, Shandong, which includes 20 MW of hydrogen production equipment [3] Industry and Market Position - The company primarily serves large state-owned power enterprises, with a focus on extending its product offerings to non-power industries [3] - Comparable companies in the industry have an average 2025E PE of 16x, while the company is given a 17x PE due to its expansion into hydrogen production [3] Financial Projections - 2025E revenue is expected to reach 1.796 billion RMB, with net profit attributable to shareholders of 219 million RMB [4] - ROE is projected to increase from 14.2% in 2024E to 19.3% in 2025E [4] - The company's P/E ratio is expected to decrease from 12.02x in 2024E to 7.71x in 2025E [4]