SIFANG(SH:601126)2024-11-05 08:10Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [5][15]. Core Insights - The company reported a revenue of 50.93 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 20.22%. The net profit attributable to the parent company was 6.09 billion yuan, up 16.82% year-on-year [1]. - In Q3 alone, the company achieved a revenue of 16.16 billion yuan, a year-on-year growth of 18.21%, with a net profit of 1.86 billion yuan, reflecting an 11.66% increase [1]. - The gross margin for Q3 was 34.21%, showing a sequential improvement of 1.14 percentage points from Q2 [1]. - The company has strengthened its cash flow management, with net cash flow from operating activities reaching 5.74 billion yuan, a 50.53% increase compared to the same period last year [2]. Summary by Sections Financial Performance - Revenue for 2024 is projected to reach 69.39 billion yuan, with growth rates of 20.65%, 18.50%, and 14.03% for the years 2024, 2025, and 2026 respectively. Corresponding net profits are expected to be 7.26 billion yuan, 8.57 billion yuan, and 10.06 billion yuan [5][6]. - The company’s EBITDA is forecasted to grow from 785.23 million yuan in 2023 to 1210.34 million yuan by 2026 [6]. Business Segments - The company maintains a strong position in the internal network business, with stable contributions to performance. In the external network business, there is significant demand in the traditional power generation and renewable energy sectors, which is expected to continue driving growth [2][5]. Cost Management - The report highlights improvements in expense ratios, with sales, management, and R&D expenses showing favorable year-on-year changes. The sales expense ratio was 6.97%, management expense ratio was 4.46%, and R&D expense ratio was 9.69% [1].