Linyang Energy(601222) 中银证券·2024-11-07 07:30Investment Rating - The report maintains a Buy rating for the company, with a target price of RMB 7.75 [1] - The sector rating is Outperform [1] Core Views - The company's three major business segments are developing synergistically, accelerating its global expansion [3] - The company reported a 6.95% YoY growth in net profit for the first three quarters of 2024, with Q3 net profit growing 15.41% YoY [3] - The company's smart meter business is expanding overseas, with significant orders in Central and Eastern Europe, and partnerships with global leaders like Landis+Gyr [3] - The energy storage business is launching new products, with a joint venture factory in Saudi Arabia expected to start production soon [3] - The company's new energy power station construction is progressing, with a 150MW photovoltaic project successfully connected to the grid in October 2024 [3] Financial Performance - Revenue for the first three quarters of 2024 reached RMB 5.17 billion, up 8.76% YoY [3] - Net profit attributable to shareholders was RMB 910 million, up 6.95% YoY [3] - Gross profit margin increased by 0.58 percentage points to 32.48% [5] - The company's self-owned power station capacity reached approximately 1.34GW by the end of Q3 2024, including 187MW of wind power projects [3] Valuation and Forecast - The report adjusts the EPS forecast for 2024-2026 to RMB 0.56/0.65/0.74, up from the previous forecast of RMB 0.55/0.60/0.71 [3] - The P/E ratio for 2024-2026 is estimated at 13.8x, 11.9x, and 10.4x respectively [3] - The company's EV/EBITDA ratio is expected to decrease from 8.2x in 2024 to 5.9x in 2026 [4] Business Highlights - The company secured domestic smart meter orders worth approximately RMB 800 million, with overseas orders reaching RMB 806 million by October 2024 [3] - The new Power Key 2.0 modular P2G energy storage system was launched in September 2024, marking a significant advancement in the industry [3] - The joint venture factory in Jeddah, developed in collaboration with ECC, is expected to start production in Q4 2024 [3] Market Performance - The company's stock price has outperformed the Shanghai Composite Index by 7.2% year-to-date, with a 25.2% increase over the past three months [2] - The company's total market capitalization is RMB 15.97 billion, with a three-month average daily trading volume of RMB 182.84 million [2]