Riyue HI(603218) 国信证券·2024-11-10 13:01Investment Rating - The investment rating for the company is "Outperform the Market" [2][8][9] Core Views - The company achieved a revenue of 1.4 billion yuan in Q3 2024, representing a year-on-year increase of 23% and a quarter-on-quarter increase of 28%. The net profit attributable to shareholders was 85 million yuan, up 38% year-on-year but down 75% quarter-on-quarter due to a significant decrease in investment income [4][8] - The company is expanding its "integrated delivery" industrial chain by enhancing its supply capabilities for high-purity pig iron and increasing its processing capacity for large castings [4][8] - The company is diversifying its product structure, including the development of nuclear fuel storage containers and expanding into high-end alloy steel markets, which is expected to enhance its resilience against market risks [4][8] Financial Performance Summary - In the first three quarters of 2024, the company reported a total revenue of 3.18 billion yuan, a decrease of 10% year-on-year, while the net profit attributable to shareholders was 510 million yuan, an increase of 44% year-on-year [4][9] - The gross margin for Q3 2024 was 14.8%, down 0.3 percentage points year-on-year and down 2.7 percentage points quarter-on-quarter [4][9] - The company’s financial forecasts for 2024-2026 indicate a net profit of 601 million yuan in 2024, 922 million yuan in 2025, and 1 billion yuan in 2026, with year-on-year growth rates of 24.9%, 53.3%, and 8.8% respectively [9][11] Investment Recommendations - The profit forecast for 2024-2025 has been revised down to 600 million yuan and 920 million yuan respectively, with a new forecast for 2026 set at 1 billion yuan. The current stock price corresponds to a PE ratio of 23.1 for 2024, 15.0 for 2025, and 13.8 for 2026 [8][9][11]