DEC(600875) Guoxin Securities·2024-11-10 04:21Investment Rating - The investment rating for the company is "Outperform the Market" [4][17]. Core Views - The company reported a revenue increase of 7% year-on-year for the first three quarters of 2024, with new orders showing robust growth [1][2]. - The third quarter of 2024 saw a revenue of 9.3 billion yuan, a year-on-year increase of 3% [1]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 4.26 billion, 4.62 billion, and 4.94 billion yuan respectively, reflecting year-on-year changes of +20.0%, +8.5%, and +6.9% [17]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 47.85 billion yuan, a 7% increase year-on-year, while the net profit attributable to shareholders was 2.62 billion yuan, down 10% year-on-year [1][5]. - The gross margin for the first three quarters was 15.7%, a decrease of 1.7 percentage points year-on-year [1][9]. - In Q3 2024, the company reported a revenue of 14.39 billion yuan, down 3% year-on-year and down 21.8% quarter-on-quarter [1][5]. Order Intake - The company secured new orders totaling 81.25 billion yuan in the first three quarters of 2024, representing a 27% year-on-year increase [2][11]. - In Q3 2024, new orders amounted to 25.17 billion yuan, a 64% increase year-on-year but a 15% decrease quarter-on-quarter [2][12]. - The renewable energy equipment segment saw a significant year-on-year increase of 152% in new orders for Q3 2024 [2][11]. Production Capacity - The company’s power generation equipment production reached 40.4 GW in the first three quarters of 2024, a 29% increase year-on-year [2][12]. - The production of wind power generation units increased by 53% year-on-year, while the production of turbine generators rose by 38% [2][12]. Profitability Metrics - The net profit margin for the first three quarters of 2024 was 6.9%, an increase of 0.3 percentage points year-on-year [1][9]. - The company’s operating expense ratio for the first three quarters was 10.7%, a decrease of 0.2 percentage points year-on-year [9]. Valuation Metrics - The current stock price corresponds to a price-to-earnings (PE) ratio of 11.9 for 2024, 10.9 for 2025, and 10.2 for 2026 [17].