ChinaSouthernPowerGridTechnology(SH:688248) Guoxin Securities·2024-11-12 03:00Investment Rating - The investment rating for the company is "Outperform the Market" [5][17]. Core Insights - The company has shown significant growth in its testing and distribution business, with a net profit increase of 75% year-on-year in the first three quarters [1][6]. - The company plans to acquire Guangzhou Yue Energy Power, which is expected to enhance its testing business capabilities [2][13]. - The demand for intelligent distribution and power supply is urgent, with the company collaborating with "Dianhong" to promote product implementation [3][14]. - The company has adjusted its profit forecast upwards, maintaining the "Outperform the Market" rating due to promising prospects in its testing and intelligent distribution businesses [3][14]. Financial Performance Summary - In the first three quarters, the company achieved revenue of 2.11 billion yuan, a year-on-year increase of 29.05%, and a net profit of 280 million yuan, up 74.95% [1][6]. - The gross margin for the first three quarters was 31.13%, an increase of 4.32 percentage points year-on-year, while the net margin was 13.45%, up 3.54 percentage points [1][6]. - In the third quarter alone, revenue reached 554 million yuan, a year-on-year increase of 46.72%, with a net profit of 95 million yuan, up 116% year-on-year [1][6][13]. - The company’s testing and debugging revenue grew by 66% year-on-year, with significant contributions from newly acquired subsidiaries [1][13]. - The intelligent distribution business saw revenue growth of 116% year-on-year, driven by the scale application of "Silk Road" related products [2][14]. Profit Forecast and Valuation - The company expects to achieve net profits of 453 million, 634 million, and 832 million yuan for the years 2024, 2025, and 2026, respectively [3][15]. - The current stock price corresponds to price-to-earnings ratios of 46, 33, and 25 for the years 2024, 2025, and 2026 [3][15].