JXFH(300213)2024-11-01 14:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 10.08 CNY over the next six months [1][9]. Core Insights - The company achieved a revenue of 740 million CNY in the first three quarters of 2024, representing a year-on-year growth of 9%, and a net profit attributable to shareholders of 40 million CNY, up 11.4% year-on-year, aligning with expectations [1]. - In Q3 2024, the company reported a revenue of 280 million CNY, a 6.7% increase year-on-year, and a net profit of 10 million CNY, which is a significant 46.9% increase year-on-year, indicating stable growth and effective cost control [2]. - The company has a record high order backlog of 750 million CNY as of September 30, 2024, marking a nearly 20% year-on-year increase, and contract liabilities reached a five-year high of 70 million CNY [3]. - The company is expanding into the civil aviation air traffic management market, showcasing its domestic voice exchange system at a recent event, which is expected to become a second growth driver [3]. - The company has successfully delivered projects in over 10 countries, including significant railway projects in Mexico and Zambia, and has deepened its collaboration with Huawei in the transportation sector [4]. Financial Performance and Forecast - The company forecasts revenues of 1,123.39 million CNY, 1,376.35 million CNY, 1,580.65 million CNY, and 1,801.90 million CNY for 2024, 2025, and 2026 respectively, with growth rates of 22.52%, 14.84%, and 14.00% [5][8]. - The net profit attributable to shareholders is projected to be 67.10 million CNY, 93.97 million CNY, 123.12 million CNY, and 149.31 million CNY for the same years, with growth rates of 40.05%, 31.02%, and 21.27% [5][8]. - The company is expected to maintain a stable gross margin, with slight improvements anticipated in the coming years [7]. Market Position and Competitive Advantage - The company is positioned as a core supplier of the next-generation 5G-R communication system for railways, benefiting from increased railway investments and the rollout of 5G-R technology [4][9]. - The report highlights the company's strong competitive position in the railway dispatch industry, supported by favorable government policies and infrastructure investments [7].