山鹰国际：聚焦主业，提质增效

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company reported a revenue of 7.3 billion in Q3 2024, a decrease of 3% year-on-year, and a net profit attributable to shareholders of -0.045 billion, down 129% year-on-year. The decline is primarily attributed to lower sales prices of raw paper and a decrease in gross margin [1]. - For the first three quarters of 2024, the company achieved a revenue of 21.6 billion, an increase of 1.4% year-on-year, with a net profit of 0.69 billion, mainly due to increased other income and investment gains from the disposal of long-term investments [1]. - The company is focusing on its core business to improve quality and efficiency, with a gross margin of 7.75%, down 1.45 percentage points year-on-year [1]. - The company has successfully converted 1.779 billion of its convertible bonds, with only 22.65% of the financing scale remaining, and has secured a 0.2 billion special loan from Industrial and Commercial Bank to reduce operational capital occupation [1][3]. Financial Summary - The company’s revenue for 2024 is projected to be 30.54 billion, with an expected growth rate of 4.1%. The net profit attributable to shareholders is forecasted at 0.075 billion, with a significant decrease in EPS from previous estimates [2][5]. - The company’s financial metrics indicate a PE ratio of 144x for 2024, decreasing to 19x by 2026, reflecting a potential recovery in profitability [2][5]. - The company’s total assets are projected to be 53.94 billion in 2024, with a debt ratio of 69.49% [5][10]. Operational Strategy - The company is committed to focusing on its core industry chain and enhancing operational efficiency, with a production increase of 8.92% in the raw paper segment and 10.4% in sales for the first nine months of 2024 [3]. - The company is preparing for the repayment of its convertible bonds, with a total repayment amount not exceeding 0.589 billion due on November 21, 2024 [3]. Market Context - The report notes the uncertainty in the macroeconomic environment, leading to adjustments in profit forecasts for 2024-2026 [2]. - The company is actively working on strategies to optimize operational funding and ensure smooth repayment of its convertible bonds [3].