HUATIE(603300) 光大证券·2024-11-03 09:13Investment Rating - The report maintains a "Buy" rating for Huatie Emergency (603300 SH) [4] Core Views - Huatie Emergency's 2024 Q1-3 revenue reached 3 73 billion yuan (+15 9% YoY) while net profit attributable to shareholders declined to 490 million yuan (-13 4% YoY) [1] - The company faces continued operational pressure due to declining rental rates and occupancy rates coupled with rising financial costs [2] - The report expects potential improvement in profitability next year driven by macroeconomic policies and coordinated pricing strategies among major rental companies [3] Financial Performance Summary Revenue and Profit - 2024 Q1-3 revenue: 3 73 billion yuan (+15 9% YoY) [1] - 2024 Q1-3 net profit attributable to shareholders: 490 million yuan (-13 4% YoY) [1] - 2024 Q3 revenue: 1 37 billion yuan (+7 1% YoY) [1] - 2024 Q3 net profit attributable to shareholders: 150 million yuan (-35 9% YoY) [1] Profitability - 2024 Q1-3 gross margin: 43 0% (-3 7 ppts YoY) [2] - 2024 Q1-3 net profit margin: 13 6% (-4 8 ppts YoY) [2] - 2024 Q3 gross margin: 42 9% (-5 8 ppts YoY) [2] - 2024 Q3 net profit margin: 11 7% (-8 1 ppts YoY) [2] Cash Flow - 2024 Q1-3 operating cash flow: 1 71 billion yuan (+37 7% YoY) [1] - 2024 Q3 operating cash flow: 560 million yuan (-8 6% YoY) [1] Industry and Company Outlook - Major rental companies including Huatie implemented a 10% price increase for aerial work platforms starting October 1 2024 which may boost market rental rates [3] - The company is shifting strategy towards integrating existing market equipment rather than purchasing new machines [3] - State-owned capital injection is expected to enhance the company's financial strength and support strategic initiatives [4] Valuation and Forecast - 2024-2026 net profit forecasts revised downward to 695/870/985 million yuan (-22%/-31%/-38% from previous estimates) [4] - 2024-2026 revenue growth projected at 17 15%/19 56%/18 53% [4] - 2024-2026 EPS forecast at 0 35/0 44/0 50 yuan [4] - 2024-2026 P/E ratios estimated at 15x/12x/11x [4]