Luenmei Quantum (SH:600167) China Post Securities·2024-11-01 05:00Investment Rating - The investment rating for the company is "Accumulate" [4][5]. Core Views - The company reported a revenue of 2.3 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 5.2%, while the net profit attributable to shareholders decreased by 22.2% to 510 million yuan [4]. - The third quarter of 2024 saw a revenue of 350 million yuan, with a quarter-on-quarter increase of 49.3%, but the net profit dropped by 47.7% compared to the previous quarter [4]. - The increase in costs due to various factors, including the real estate cycle, has led to a decline in gross and net profit margins, with gross margin at 31.9% and net margin at 22.8%, down 7.1 percentage points and 9.2 percentage points year-on-year, respectively [4]. - The company has increased its coal inventory during the off-season, which is expected to help reduce coal costs during the heating season, potentially improving performance [4]. Financial Summary - The company forecasts revenues of 3.59 billion, 3.80 billion, and 4.07 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected at 750 million, 830 million, and 900 million yuan [5][6]. - The earnings per share (EPS) are expected to be 0.33 yuan in 2024, 0.36 yuan in 2025, and 0.39 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 18, 16, and 15 [6][5]. - The company's total assets are projected to grow from 176.46 billion yuan in 2023 to 211.58 billion yuan by 2026, with a debt-to-asset ratio of 32.6% in 2023, expected to slightly decrease over the forecast period [8].