SMHC(600131) Guotou Securities·2024-11-05 08:10Investment Rating - The report maintains a "Buy-A" rating for the company with a 6-month target price of 24.08 CNY, representing a dynamic P/E ratio of 30 times for 2024 [7][9]. Core Views - The company is positioned as a key player in the energy digital transformation, capitalizing on opportunities from "Digital China" and the construction of a new power system. It focuses on comprehensive digital services across the entire power supply chain [6][9]. - The company reported a revenue of 3.747 billion CNY for the first three quarters of 2024, a decrease of 4.89% year-on-year, and a net profit of 298 million CNY, down 13% year-on-year [3][4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 1.065 billion CNY, a year-on-year decline of 4.38%. The net profit for the same period was 66 million CNY, down 29.29% year-on-year. The gross margin for the first three quarters was 21.16%, an increase of 0.59 percentage points year-on-year [4][5]. - The company's inventory at the end of Q3 reached 674 million CNY, a significant increase of 47.81% year-on-year, indicating potential improvement in Q4 performance [4]. Business Strategy - The company has established a comprehensive business structure that spans the entire information and communication industry chain, covering all aspects of power generation, transmission, transformation, distribution, and utilization. This includes a robust portfolio of mature technology products and solutions [5]. - Key subsidiaries include: - China Electric Feihua, focusing on communication network construction and operation, which has performed well in recent years [5]. - China Electric Puhua, which has launched its power marketing 2.0 system across 27 provincial power companies [5]. - China Electric Qimingxing, which is developing an open-source technology system based on the Harmony OS, currently in the cultivation stage [5]. Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 8.428 billion CNY, 9.236 billion CNY, and 10.139 billion CNY, respectively. Net profits are expected to be 964.6 million CNY, 1.0726 billion CNY, and 1.189 billion CNY for the same years [6][11].