Linyang Energy(601222) 华泰证券·2024-10-31 03:05Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 8.20 [6][5]. Core Insights - The company reported a Q3 revenue of RMB 1.703 billion, a year-on-year increase of 10.6%, while the net profit attributable to shareholders was RMB 312 million, up 15.4% year-on-year [2][3]. - The gross margin for Q3 was 34.7%, reflecting a year-on-year increase of 0.27 percentage points, indicating stable growth in profitability [3]. - The company is expanding its overseas operations, focusing on Europe, the Middle East, and Southeast Asia, which is expected to contribute to future profit growth [4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of RMB 5.166 billion, a year-on-year increase of 8.8%, and a net profit of RMB 910 million, up 7.0% year-on-year [2][3]. - The Q3 net profit margin was 18.4%, showing a year-on-year increase of 1.06 percentage points [3]. Business Segments - The company operates in three main segments: smart power distribution, energy storage, and renewable energy, with significant efforts in overseas market development [4]. - The company has initiated customized product development and certification for its smart power distribution products in international markets [4]. Profitability and Valuation - The report forecasts the company's net profit for 2024-2026 to be RMB 1.163 billion, RMB 1.292 billion, and RMB 1.454 billion, respectively [5][14]. - The target price of RMB 8.20 is based on a 13x PE valuation for 2025, reflecting the company's strong financial health and competitive positioning in the market [5][6].