Zhuzhou Kibing (SH:601636) China Post Securities·2024-11-01 01:02Investment Rating - The investment rating for the company is "Add" [2] Core Views - The company reported a revenue of 11.6 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 3.7%. However, the net profit attributable to shareholders decreased by 43.8% year-on-year to 700 million yuan, with a significant decline in Q3 where the revenue was 3.69 billion yuan, down 14.2% year-on-year, and a net loss of 110 million yuan, a drop of 118.8% year-on-year [2][3] - The gross margin for Q3 was 7.7%, a decrease of 20.0 percentage points year-on-year, and the net margin was -4.74%, down 18.59 percentage points year-on-year, primarily due to falling prices of float glass and photovoltaic glass [3] - The company expects a stabilization in Q4, driven by potential policy support for the real estate sector and a gradual rebalancing of supply and demand in the float glass market [3] Financial Performance Summary - The company’s total revenue for 2023 is projected at 15.68 billion yuan, with a growth rate of 17.8%. For 2024 and 2025, revenues are expected to be 17.42 billion yuan and 19.68 billion yuan, reflecting growth rates of 11.1% and 12.9% respectively [5][7] - The net profit attributable to shareholders is forecasted to be 682 million yuan in 2024, a decrease of 61.1% from 2023, but is expected to rebound to 1.1 billion yuan in 2025, marking a growth of 61.9% [5][7] - The company’s PE ratio for 2024 is projected at 26.64, decreasing to 16.46 in 2025, indicating a potential improvement in valuation as earnings recover [5][7]