Xianhe(603733)2024-11-01 08:31Investment Rating - The report maintains a "Recommended" rating for the company [7]. Core Views - The company reported a revenue of 7.262 billion yuan for Q3 2024, representing a year-on-year increase of 16.89%. The net profit attributable to shareholders was 817 million yuan, up 113.97% year-on-year, while the non-recurring net profit reached 742 million yuan, a 135.46% increase year-on-year [7]. - The company's gross margin for the reporting period was 16.55%, an increase of 7.36 percentage points year-on-year. The gross margin for Q3 2024 was 14.58%, up 5.26 percentage points year-on-year but down 2.81 percentage points quarter-on-quarter [7]. - The company is expanding its production capacity with new projects in Guangxi and Hubei, which are expected to enhance cost advantages and drive performance growth in Q4 2024 [7]. - The company is a leader in the specialty paper industry, with significant advantages in diversified product operations and integrated operations driving profitability [7]. Financial Summary - For 2024E, the company is expected to achieve a revenue of approximately 12.144 billion yuan, with a growth rate of 19.64%. The net profit attributable to shareholders is projected to be around 1.366 billion yuan, reflecting a growth rate of 25.71% [11]. - The company's diluted EPS for 2024E is estimated at 1.54 yuan, with corresponding P/E ratios of 12X for 2024, 10X for 2025, and 8X for 2026 [7][11].