HUALU-HENGSHENG(600426) 国海证券·2024-11-01 13:50Investment Rating - The report maintains a "Buy" rating for the company [2][7][24] Core Views - The company achieved a revenue of 25.18 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 30.16%. The net profit attributable to shareholders was 3.05 billion yuan, up 4.16% year-on-year [2][3] - The third quarter revenue was 8.205 billion yuan, a year-on-year increase of 17.43% but a quarter-on-quarter decrease of 8.81%. The net profit attributable to shareholders was 825 million yuan, down 32.27% year-on-year and 28.84% quarter-on-quarter [3][4] - The company is facing challenges due to product price declines and maintenance impacts, but the second phase of the Jingzhou project is progressing steadily [2][6] Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 8.205 billion yuan, with a gross profit of 1.441 billion yuan, and a net profit of 825 million yuan. The gross margin was 17.56%, down 6.77 percentage points year-on-year, and the net margin was 10.88%, down 6.54 percentage points year-on-year [3][4] - The company’s total revenue for the first three quarters of 2024 was 25.18 billion yuan, with a net profit of 3.05 billion yuan, and a return on equity (ROE) of 10.15%, down 0.36 percentage points year-on-year [2][3] Market Data - The company’s market capitalization is approximately 48.67 billion yuan, with a circulating market value of about 48.49 billion yuan. The stock has a 52-week price range of 19.83 to 31.90 yuan [3][4] - The company’s stock performance relative to the CSI 300 index shows a decline of 12.5% over the past month, 7.8% over the past three months, and 27.2% over the past year [3][4] Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 33.4 billion yuan, 39.1 billion yuan, and 44.5 billion yuan, respectively. Net profits are projected to be 3.96 billion yuan, 4.99 billion yuan, and 6.19 billion yuan for the same years [7][24] - The company is expected to maintain a price-to-earnings (P/E) ratio of 12, 10, and 8 for the years 2024, 2025, and 2026, respectively, indicating a favorable growth outlook [7][24]