MXEP(SH:600101) Guoxin Securities·2024-11-06 10:10Investment Rating - The investment rating for the company is "Outperform the Market" [6][3][16] Core Views - The company has shown robust revenue growth with a significant increase in net profit for Q3 2024, driven by higher electricity sales due to prolonged high temperatures [1][8] - The company is actively enhancing its power grid infrastructure, with investments of 2.964 billion yuan during the 14th Five-Year Plan, focusing on main grid construction and rural grid upgrades [2][15] - The comprehensive energy service business is steadily expanding, contributing to incremental performance through various projects including electric vehicle charging and energy management [2][15] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 2.134 billion yuan (+6.09%) and a net profit of 224 million yuan (+21.43%), with a significant profit increase in Q3 2024 of 139 million yuan (+68.11%) [1][8] - The gross margin for the first three quarters of 2024 was 14.73%, an increase of 1.32 percentage points year-on-year, attributed to higher sales volume [11][12] Profit Forecast - The profit forecast for 2024-2026 has been revised upwards, with expected net profits of 229 million yuan, 248 million yuan, and 266 million yuan respectively, reflecting year-on-year growth rates of 27.6%, 8.3%, and 7.1% [3][15] - The earnings per share (EPS) are projected to be 0.54 yuan, 0.59 yuan, and 0.63 yuan for the respective years [3][15] Valuation Metrics - The current price-to-earnings (P/E) ratios are 19.0, 17.6, and 16.4 for 2024, 2025, and 2026 respectively [3][16] - The company’s return on equity (ROE) is expected to increase to 7.7% in 2024, up from 6.4% in 2023 [11][14]