Hundsun(SH:600570) Minsheng Securities·2024-11-01 15:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating potential for valuation recovery due to ongoing capital market reforms and accelerated digital investments in financial institutions [2]. Core Insights - The company reported a significant increase in Q3 profits primarily due to investment income, with a net profit of 416 million yuan for Q3, representing a year-on-year growth of 159.18% [2]. - However, the overall net profit for the first three quarters of 2024 decreased by 26.57% year-on-year, with a non-recurring net profit decline of 50.28% [2]. - Revenue for Q3 was 1.352 billion yuan, down 12.26% year-on-year, mainly due to a decline in wealth technology service income [2]. - The company successfully launched its new investment trading management system O45, marking a significant milestone in the insurance asset management sector [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a net profit of 446 million yuan, down 26.57% year-on-year, while the non-recurring net profit was 267 million yuan, down 50.28% [2]. - Q3 revenue was reported at 1.352 billion yuan, a decrease of 12.26% year-on-year, with wealth technology service revenue falling by 20.3% [2]. - The company forecasts net profits of 1.473 billion yuan, 1.726 billion yuan, and 2.017 billion yuan for 2024, 2025, and 2026 respectively, with corresponding valuations of 33, 28, and 24 times [2][5]. Product Development and Market Position - The company is expanding its product offerings, with the O45 system being the first of its kind in the insurance asset management industry, indicating a strong position in the market [2]. - The ongoing digital transformation in the financial sector is expected to create additional demand for the company's core products [2]. Financial Projections - The company is projected to have a net profit growth rate of 3.42% in 2024, with further increases expected in subsequent years [5]. - The estimated revenue growth rates for the next three years are 0.34% for 2024, 12.33% for 2025, and 11.0% for 2026 [5]. Valuation Metrics - The current market price is 25.83 yuan, with a PE ratio of 34 for 2024, expected to decrease to 28 by 2026 [4][6]. - The PB ratio is projected to decline from 6.1 in 2024 to 4.5 in 2026, indicating potential for valuation improvement [6].