STEC(600820) Minsheng Securities·2024-10-31 17:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 6.85 CNY and projected PE ratios of 7, 7, and 6 for the years 2024, 2025, and 2026 respectively [6][4]. Core Insights - The company's Q3 performance was significantly influenced by investment income, achieving a single-quarter investment income of 1.486 billion CNY, which contributed to maintaining a relatively high net profit margin of 5.19% despite a revenue decline [2][4]. - The company is expected to benefit from the deepening reform of state-owned enterprises in Shanghai and the development of the data factor industry, with a focus on accumulating data resources and engaging in innovative projects [4][2]. - The company has shown improvement in operating cash flow, with a net inflow of 2.392 billion CNY for the first three quarters of 2024, compared to 368 million CNY in the same period last year [4][3]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenues of 42.888 billion CNY, a year-on-year decrease of 8.57%, while the net profit attributable to shareholders was 1.499 billion CNY, a slight increase of 0.35% [1][4]. - The Q3 revenue was 14.854 billion CNY, reflecting a year-on-year decline of 23.18%, with a net profit of 714 million CNY, down 0.12% year-on-year [1][2]. - The company’s gross margin for Q3 was 5.43%, down 6.59 percentage points year-on-year, while the net margin improved by 2.00 percentage points year-on-year [2][4]. Future Projections - The company is projected to achieve net profits of 3.014 billion CNY, 3.203 billion CNY, and 3.384 billion CNY for the years 2024, 2025, and 2026 respectively, indicating a stable growth outlook [4][7]. - The report highlights a stable dividend yield of over 30%, making the company an attractive high-dividend investment option [4][6].