DRTG(600329) 长城证券·2024-11-08 06:24Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [6][17]. Core Views - The industrial segment continues to show steady performance, with profit growth turning positive year-on-year. The company reported a revenue of 56.1 billion yuan for the first three quarters of 2024, a decrease of 3.1% year-on-year, while the net profit attributable to shareholders was 8.0 billion yuan, down 6.3% year-on-year [1][2]. - The company plans to transfer a 13% stake in a subsidiary, which is expected to improve cash flow and focus on core business expansion. The transaction is projected to impact investment income by approximately 1.7 billion yuan [3][6]. - The company is enhancing its marketing structure and focusing on channel penetration and regional expansion, which is expected to drive sales growth of key products [3][6]. Financial Summary - Revenue and Profitability: The company achieved a revenue of 8,222 million yuan in 2023, with a slight decline of 0.3% compared to 2022. The projected revenue for 2024 is 8,277 million yuan, with a growth rate of 0.7% [1][10]. - Net Profit: The net profit attributable to shareholders for 2023 was 987 million yuan, reflecting a year-on-year increase of 14.5%. The forecast for 2024 is 1,023 million yuan, with a growth rate of 3.6% [1][10]. - Key Financial Ratios: The return on equity (ROE) for 2023 was 14.6%, with projections of 15.4% for 2024. The earnings per share (EPS) for 2023 was 1.28 yuan, expected to rise to 1.33 yuan in 2024 [1][11]. Segment Performance - Industrial Segment: The industrial segment reported a revenue of 35.9 billion yuan for the first three quarters of 2024, an increase of 4.3% year-on-year. The commercial segment, however, faced challenges with a revenue decline of 14.5% [2][6]. - Gross Margin Improvement: The gross margin for Q3 2024 improved to 46.7%, up 6.6 percentage points year-on-year, attributed to better business structure [2][6]. Future Outlook - The company is expected to see net profits of 10.2 billion yuan, 11.8 billion yuan, and 13.3 billion yuan for the years 2024, 2025, and 2026 respectively. The EPS is projected to be 1.3 yuan, 1.5 yuan, and 1.7 yuan for the same years [6][12].