CH ENERGY ENG(601868) 海通国际·2024-11-14 09:43Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 2.91 based on a 14 times P/E ratio for 2024 [4][13]. Core Insights - The company achieved revenue of RMB 295.14 billion in the first three quarters of 2024, representing a year-on-year increase of 3.44%. Net profit attributable to shareholders was RMB 3.60 billion, up 17.28% year-on-year [9][10]. - The revenue growth turned positive in Q3 after a negative growth in Q2, with quarterly revenues showing changes of +10.04%, -6.51%, and +8.25% year-on-year for Q1, Q2, and Q3 respectively. Net profit attributable to shareholders saw significant growth of +31.71%, -15.16%, and +97.93% year-on-year in the same quarters [10][12]. - The gross profit margin increased by 0.59 percentage points to 11.54%, while the net profit margin rose by 0.06 percentage points to 2.07% in the first three quarters of 2024 [11]. Financial Performance Summary - For the first three quarters of 2024, the company reported a gross profit margin of 11.54% and a net profit margin of 2.07%, with a weighted average ROE of 3.27% [11]. - The operating cash flow showed improvement, with a net inflow of RMB 1.99 billion in Q3, a significant increase compared to a net outflow of RMB 1.12 billion in Q3 2023 [11][12]. - The company signed new orders totaling RMB 988.86 billion in the first three quarters of 2024, a year-on-year increase of 5.03%, with traditional energy orders growing by 46.38% [12][13]. Business Outlook - The company is positioned as a leader in the full energy and power industry chain, with traditional energy providing performance support and new energy driving future growth [13]. - The controlling shareholder's plan to increase holdings by RMB 300-500 million reflects confidence in the company's future prospects [13].