wsdl(600995) Guohai Securities·2024-11-07 00:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][5][8]. Core Views - The company has demonstrated significant growth in Q3 2024, with a revenue increase of 33.3% year-on-year, reaching 1.61 billion yuan, and a remarkable net profit growth of 231%, amounting to 420 million yuan [2][5]. - The increase in performance is attributed to a substantial rise in water inflow for peak regulation hydropower plants, leading to a 130.7% increase in power generation [2][5]. - The company is actively expanding its capacity with 10.8 million kilowatts of pumped storage projects under construction, indicating strong long-term growth potential [2][5]. Summary by Sections Financial Performance - In Q3 2024, the company's net profit margin improved to 31.2%, an increase of 18.1 percentage points year-on-year, primarily due to the surge in peak regulation hydropower performance [2][5]. - The gross profit margin also increased by 13.5 percentage points to 52.9% [2][5]. Revenue and Profit Forecast - The projected revenues for 2024, 2025, and 2026 are 5.955 billion yuan, 6.731 billion yuan, and 8.049 billion yuan, respectively, with growth rates of 6%, 13%, and 20% [6][8]. - The expected net profits for the same years are 1.192 billion yuan, 1.365 billion yuan, and 1.688 billion yuan, reflecting year-on-year growth rates of 18%, 15%, and 24% [6][8]. Market Position - The company's stock is currently priced at 11.38 yuan, with a market capitalization of approximately 36.37 billion yuan [2][5]. - The company has a total share capital of 319.6 million shares [1].