DHI(002487) Haitong Securities·2024-11-13 02:37Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company has experienced a significant decline in revenue and net profit in the first three quarters of 2024, with revenue at 2.306 billion yuan, down 30.81% year-on-year, and net profit at 282 million yuan, down 30.88% year-on-year. This decline is attributed to adjustments in the export offshore delivery model and seasonal factors affecting the power generation business [6][8] - Despite the decline in revenue, the company's gross margin improved by 2.99 percentage points year-on-year to 27.19%, while the net margin remained stable [6] - The company successfully transitioned its offshore business to a higher value-added "manufacturing + transportation" DAP model, with overseas offshore business maintaining high profitability and excellent payment collection [7] - The company expects a recovery in net profit, projecting 463 million yuan for 2024 and 702 million yuan for 2025, with corresponding EPS of 0.73 yuan and 1.10 yuan per share [8][10] Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 950 million yuan, down 25.31% year-on-year but up 6.38% quarter-on-quarter. The net profit for the same period was 108 million yuan, down 20.09% year-on-year and down 10.55% quarter-on-quarter [6] - The gross margin for Q3 2024 was 25.22%, an increase of 0.64 percentage points year-on-year, while the net margin was 11.38%, up 0.74 percentage points year-on-year [6] Cash Flow and Balance Sheet - The company's operating cash flow significantly improved, with a net cash flow of 552 million yuan in the first three quarters of 2024, an increase of 279.63% year-on-year [8] - As of September 30, 2024, the company had inventory of 2.166 billion yuan, up 32.65% year-on-year, and contract liabilities of 1.684 billion yuan, up 293.84% year-on-year [8] Market Position and Outlook - The company is expected to benefit from the growth potential of its export offshore business, with a reasonable valuation range of 22.03 to 27.53 yuan based on a PE ratio of 20-25x for 2025 [8][10] - The offshore business now accounts for over 60% of total revenue, marking a significant increase from the previous year [7]