BURTC(600861) Tai Ping Yang·2024-11-06 08:23Investment Rating - The report maintains a "Buy" rating for Beijing Renli (600861) with a target price based on the last closing price of 20.75 [1]. Core Insights - The company's outsourcing business continues to show high growth, contributing approximately 85% to overall revenue, which is crucial for sustained growth amid economic challenges [1]. - The company reported a revenue of 33.179 billion yuan for the first three quarters of 2024, a year-on-year increase of 15.46%, and a net profit attributable to shareholders of 641 million yuan, up 84.75% year-on-year [1]. - The report highlights the organizational restructuring aimed at improving efficiency, with a focus on integrating the operations of various subsidiaries [1]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: - 2023: 38.31 billion yuan - 2024E: 43.76 billion yuan - 2025E: 50.10 billion yuan - 2026E: 57.35 billion yuan - The expected revenue growth rates are 18.47% for 2023, 14.21% for 2024, 14.49% for 2025, and 14.48% for 2026 [3][4]. - The net profit attributable to shareholders is projected to be: - 2023: 547.98 million yuan - 2024E: 910.88 million yuan - 2025E: 1,005.61 million yuan - 2026E: 1,137.55 million yuan, with growth rates of 32.24% for 2023 and 66.22% for 2024 [3][4]. Earnings Per Share and Valuation - The diluted earnings per share (EPS) are forecasted as follows: - 2023: 1.08 yuan - 2024E: 1.61 yuan - 2025E: 1.78 yuan - 2026E: 2.01 yuan - The corresponding price-to-earnings (PE) ratios are projected to be 17.38 for 2023, 12.90 for 2024, 11.68 for 2025, and 10.33 for 2026 [3][4]. Organizational Restructuring - The company has undergone a significant internal restructuring, transferring equity stakes in 27 companies from Beijing Foreign Enterprise to enhance operational focus and management consistency across regional subsidiaries [1].