ShaanGu(601369) 国投证券·2024-11-02 12:23Investment Rating - The report maintains a "Buy-A" rating with a 6-month target price of 10.4 CNY [1][3] Core Views - The company has shown a positive turnaround in Q3 2024, with a year-on-year revenue increase of 9.7% in Q3 and a net profit growth of 5.37% [1] - The company is expanding into new markets, particularly in metallurgy and energy, which is expected to drive revenue growth [2][3] - The company has a strong position in the domestic turbine machinery market, particularly in axial compressors, and is expected to benefit from a recovery in the metallurgy sector [2][3] Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 7.289 billion CNY, a slight increase of 0.28% year-on-year, while net profit was 666 million CNY, a decrease of 8.25% [1] - The gross profit margin for the first three quarters was approximately 22.86%, a decrease of 0.54 percentage points year-on-year, and the net profit margin was about 9.14%, down 0.85 percentage points [1] - The company has maintained a high dividend payout ratio of over 62% from 2019 to 2023, with a corresponding dividend yield of approximately 4.9% in 2023 [2] Revenue and Profit Forecast - The company is projected to achieve net profits of 1.05 billion CNY, 1.23 billion CNY, and 1.42 billion CNY for the years 2024, 2025, and 2026, respectively, with growth rates of 3.0%, 16.8%, and 15.3% [3] - The expected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 15, 12, and 11 times, respectively [3] Market Expansion - The company has signed new contracts in the overseas metallurgy sector and is making strides in the domestic non-metallurgy sector [1] - The company is also expanding its gas project operations, with a 17% year-on-year revenue growth in gas operations for the first three quarters of 2024 [1]