SIE(300687) 甬兴证券·2024-11-06 10:23Investment Rating - The investment rating for the company is "Buy" [3][12]. Core Views - The company's profit margin is under pressure in Q3 2024, with a revenue of 634 million yuan, a year-on-year increase of 1.43%, and a net profit of 65 million yuan, a year-on-year decrease of 38.91% [2]. - The company is expected to see a recovery in performance in Q4 2024, driven by macroeconomic policies and an acceleration in client repayments [2]. - The company is focusing on both organic growth and external investments to ensure development momentum, with a research and development expense of 90 million yuan in Q3 2024, representing a 14.17% R&D expense ratio, an increase of 1.21 percentage points year-on-year [2]. - The management's confidence is reflected in the newly announced equity incentive and partner shareholding plans, which are tied to achieving specific net profit growth targets [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 1.705 billion yuan, a year-on-year increase of 1.37%, and a net profit of 95 million yuan, a year-on-year decrease of 26.31% [1]. - In Q3 2024, the company reported a revenue of 634 million yuan and a net profit of 65 million yuan, with a significant decline in profit due to the cessation of certain tax benefits and government subsidies [2]. Earnings Forecast and Valuation - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are adjusted to 0.65 yuan, 0.79 yuan, and 0.88 yuan respectively, with corresponding price-to-earnings (PE) ratios of 29x, 23x, and 21x based on the closing price on October 30, 2024 [3]. - The company’s revenue is projected to grow at rates of 5.8%, 9.5%, and 12.6% for the years 2024, 2025, and 2026 respectively [4]. Business Outlook - The company's ERP business is expected to benefit from the acceleration of domestic substitution processes, while its smart manufacturing segment is poised to gain from market growth and increasing penetration of MES [3].