NARI-TECH(600406) 东吴证券·2024-11-01 09:04Investment Rating - Buy (Maintained) [1] Core Views - The company's performance in Q3 2024 was in line with market expectations, with revenue of 32.31 billion yuan, up 13% YoY, and net profit attributable to the parent company of 4.47 billion yuan, up 7.5% YoY [1] - The gross profit margin remained stable at 29.3%, while the net profit margin attributable to the parent company decreased slightly by 0.7 percentage points to 13.8% [1] - Q3 2024 revenue was 12.2 billion yuan, up 18.2% YoY, with net profit attributable to the parent company of 1.76 billion yuan, up 6.3% YoY [1] Financial Performance - Revenue for 2024E is projected to be 57.494 billion yuan, up 11.48% YoY, with net profit attributable to the parent company of 7.902 billion yuan, up 10.01% YoY [1] - EPS for 2024E is expected to be 0.98 yuan per share, with a P/E ratio of 26.39x [1] - Revenue growth is forecasted to continue at 11.79% in 2025E and 12.14% in 2026E, with net profit attributable to the parent company growing at 12.50% and 14.17% respectively [1] Industry and Market Opportunities - The company secured new orders for UHV projects worth approximately 2.9 billion yuan in 2023, with delivery expected to start in H2 2024, boosting profitability in Q4 [2] - The power grid construction sector remains highly active, with grid infrastructure investment reaching 398.2 billion yuan in the first nine months of 2024, up 21% YoY [3] - The company is expanding into international markets, particularly in countries along the Belt and Road, such as Saudi Arabia, Pakistan, and Brazil, leveraging its product competitiveness and brand influence [3] Operational Highlights - The company's inventory at the end of Q3 2024 was 12.78 billion yuan, up 19.4% YoY, while contract liabilities stood at 5.35 billion yuan, up 50.6% YoY, ensuring sustained growth [4] - R&D and market expansion efforts led to a 20.5% increase in operating expenses for Q1-Q3 2024, reaching 4.26 billion yuan [4] Financial Projections - The company's net profit attributable to the parent company is projected to grow to 7.902 billion yuan in 2024E, 8.89 billion yuan in 2025E, and 10.15 billion yuan in 2026E [4] - The P/E ratio is expected to decrease to 23.46x in 2025E and 20.55x in 2026E, reflecting strong earnings growth [4]