STEC(600820) 兴业证券·2024-11-07 06:17Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's Q3 2024 revenue was under pressure, but a significant increase in investment income supported profits [5] - The company's new orders in Shanghai and municipal engineering showed strong growth [7] - The company's Q3 cash flow performance was excellent, with a positive turnaround in operating cash flow for the first three quarters [9] Financial Performance - Q3 2024 revenue was RMB 14.854 billion, a decrease of 23.18% YoY [6] - Q3 2024 net profit attributable to shareholders was RMB 714 million, a slight decrease of 0.12% YoY [6] - The company's comprehensive gross margin for the first three quarters of 2024 was 11.65%, a decrease of 0.22 percentage points YoY [3] - The company's net profit margin for the first three quarters of 2024 was 3.77%, an increase of 0.36 percentage points YoY [3] New Orders - The company's new orders for the first three quarters of 2024 were RMB 65.705 billion, an increase of 9.46% YoY [7] - New orders for municipal engineering and road engineering were RMB 21.206 billion and RMB 6.539 billion, with YoY growth rates of 43.16% and 52.16% respectively [7] Cash Flow - The company's operating cash flow for the first three quarters of 2024 was RMB 2.392 billion, an increase of RMB 2.025 billion YoY [9] - Q3 2024 operating cash flow was RMB 6.156 billion, an increase of RMB 5.191 billion YoY [9] Profit Forecast - The company's net profit attributable to shareholders is forecasted to be RMB 3.051 billion, RMB 3.208 billion, and RMB 3.395 billion for 2024, 2025, and 2026 respectively [9] - EPS is forecasted to be RMB 0.97, RMB 1.02, and RMB 1.08 for 2024, 2025, and 2026 respectively [9] Valuation - The PE ratio based on the closing price on November 1, 2024, is 7.2x, 6.8x, and 6.4x for 2024, 2025, and 2026 respectively [9]