Xiangyu(600057) 光大证券·2024-11-05 00:42Investment Rating - The report maintains an "Accumulate" rating for the company [3][6]. Core Views - The company experienced a decline in revenue and net profit in the first three quarters of 2024, with revenue at CNY 297.70 billion, down 19.24% year-on-year, and net profit at CNY 0.89 billion, down 24.67% year-on-year. However, the adjusted net profit increased by 42.60% year-on-year to CNY 0.285 billion [1][2]. - The company is focusing on enhancing its shipbuilding capacity to capitalize on the cyclical recovery in the shipbuilding market, with a backlog of 81 vessels as of mid-2024 and a projected 60% increase in annual production capacity following the acquisition of key assets [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of CNY 94.22 billion, a decrease of 30.25% year-on-year, and a net profit of CNY 1.11 billion, down 61.80% year-on-year. The gross margin for Q3 was 1.9%, a decline of 0.4 percentage points from the previous quarter, although it showed an improvement year-on-year [1][2]. - The company recorded asset impairment losses of CNY 0.192 billion and credit impairment losses of CNY 0.589 billion in the first three quarters of 2024, with significant provisions made for debts related to the Delong Group [2]. Business Outlook - The company is enhancing its shipbuilding capabilities, having secured 16 orders for stainless steel chemical tankers, and aims to shorten production cycles while reducing costs. The shipbuilding segment is expected to contribute positively to future earnings as market conditions improve [3]. - The earnings forecast for 2024-2026 has been revised downwards, with expected net profits of CNY 1.145 billion, CNY 2.250 billion, and CNY 2.625 billion respectively, reflecting the impact of weak terminal demand and asset impairments [3].