东方电子：业绩持续稳健，长期受益电网数智化发展

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [10]. Core Views - The company has demonstrated steady performance with a revenue of 4.63 billion yuan in the first three quarters, reflecting a year-on-year increase of 12.96%, and a net profit of 420 million yuan, up 22.26% year-on-year [1]. - The company is positioned to benefit from the development of smart grid technologies, with significant investments from the State Grid and a growing market for energy services and automation [3][4]. - The company has a strong focus on research and development, achieving a record high in R&D expense ratio, which enhances its competitive advantage in the power automation sector [2]. Financial Performance - For the first three quarters, the gross margin was 32.78%, a slight decrease of 0.17 percentage points year-on-year, while the net margin improved by 0.25 percentage points to 8.46% [2]. - The company’s revenue projections for 2024-2026 are 7.61 billion, 9.22 billion, and 11.30 billion yuan respectively, with net profits expected to be 650 million, 780 million, and 940 million yuan [4]. - The earnings per share (EPS) are projected to grow from 0.40 yuan in 2023 to 0.70 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 28.4 to 16.4 [5]. Market Opportunities - The company has secured significant contracts with the State Grid for various products, totaling 1.52 billion yuan, which represents a market share of 4% [3]. - The company is expanding its international presence, particularly in Saudi Arabia, Egypt, and Jordan, with successful project bids and local production initiatives [3]. Summary of Financial Data - The company’s total revenue for 2023 is projected at 6.48 billion yuan, with a growth rate of 19% compared to 2022 [5]. - The net profit for 2023 is estimated at 541 million yuan, reflecting a growth rate of 23% [5]. - The company’s total assets are expected to increase from 11.14 billion yuan in 2023 to 16.91 billion yuan by 2026 [8].