XJEC(000400) 东吴证券·2024-11-01 08:41Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q3 2024 performance aligns with market expectations, showing continuous improvement in profitability [1] - The company is expected to see significant revenue contributions from high-voltage orders in Q4, enhancing growth potential [2] - The company is focusing on its core business by gradually divesting its EPC operations, which has led to fluctuations in revenue but improved overall gross margins [3] - Increased sales expenses are noted due to the establishment of a secondary marketing system, while the company holds a substantial backlog of orders [4] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 9.59 billion yuan, a decrease of 11.5% year-on-year, and a net profit of 889 million yuan, an increase of 10.4% year-on-year [1] - The gross margin for Q3 2024 was 24.5%, up 5.8 percentage points year-on-year, indicating improved profitability [1] - The company forecasts a net profit of 1.29 billion yuan for 2024, reflecting a year-on-year growth of 28% [4] - The projected P/E ratios for 2024, 2025, and 2026 are 24x, 18x, and 15x respectively, with a target price of 42.2 yuan per share for 2025 [4] Order and Revenue Outlook - The company has secured approximately 1.3 billion yuan in orders for high-voltage projects, expected to be recognized in Q4 2024 and 2025 [2] - The internal business is anticipated to grow steadily, with a projected year-on-year increase of 5-10% in 2024 [3] - The external business, particularly in new energy, is expected to see a slight contraction, but other segments are projected to maintain growth [3]