SIFANG(SH:601126) Guoxin Securities·2024-11-06 01:37Investment Rating - The investment rating for the company is "Outperform the Market" [4][15][19] Core Views - The company has shown steady growth in revenue and profit in the first three quarters, with revenue reaching 5.093 billion yuan, a year-on-year increase of 20.22%, and a net profit of 609 million yuan, up 16.82% year-on-year [5][11] - The company is expected to benefit from the recovery in prices of relay protection and substation monitoring products starting in 2024, following a period of price decline [11][14] - The company is well-positioned in the concentrated renewable energy sector, with strong competitiveness in various projects, particularly in large bases and offshore wind power [14] Summary by Sections Financial Performance - In the first three quarters, the company achieved a revenue of 5.093 billion yuan, with a gross margin of 33.70% and a net margin of 11.98% [5][11] - For Q3, the company reported a revenue of 1.616 billion yuan, a year-on-year increase of 18.21%, and a net profit of 186 million yuan, up 11.66% year-on-year [11][14] Future Outlook - The company is expected to see a significant increase in overseas revenue, which reached 117 million yuan in the first half of 2024, a 41% year-on-year growth [14] - The investment in distribution networks is anticipated to enter a favorable cycle due to various policy implementations and market demands [14] Profit Forecast - The profit forecast for 2024-2026 has been slightly adjusted, with expected net profits of 731 million yuan, 836 million yuan, and 1.012 billion yuan respectively [15][17]