XJEC(000400) 长江证券·2024-11-18 02:37Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Views - The company reported a rapid growth in non-recurring profit in Q3 2024, with expectations for significant revenue release from direct current (DC) business in Q4 [5][6]. - Despite a year-on-year decline in revenue for the first three quarters, the net profit attributable to the parent company increased by 10.41%, and the non-recurring net profit grew by 20.22% [5][6]. - The company anticipates a strong performance in Q4 due to the concentrated delivery of ultra-high voltage DC equipment, which is expected to contribute significantly to revenue growth [7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved operating revenue of 9.586 billion yuan, a decrease of 11.5% year-on-year, while the net profit attributable to the parent company was 895 million yuan, an increase of 10.41% [5]. - In Q3 alone, the operating revenue was 2.75 billion yuan, down 24.2% year-on-year, but the net profit attributable to the parent company rose by 10.56% to 267 million yuan [5][6]. - The gross profit margin for the first three quarters was 21.94%, up 3.21 percentage points year-on-year, with Q3 gross margin reaching 24.52%, an increase of 5.81 percentage points [6]. Cost and Expenses - The company’s expense ratio for the first three quarters was 11.38%, an increase of 2.34 percentage points year-on-year, with Q3 expense ratio at 15.78%, up 5 percentage points [6]. - The increase in expenses was primarily due to a rise in sales, management, and R&D expenses, attributed to the overall decrease in operating revenue [6]. Inventory and Contract Liabilities - As of the end of Q3, the company's inventory reached 3.377 billion yuan, a year-on-year increase of 6.32% and a quarter-on-quarter increase of 20%, marking a historical high [6]. - Contract liabilities also increased to 1.887 billion yuan, up 27% quarter-on-quarter, indicating a potential improvement in Q4 deliveries [6]. Future Outlook - The company expects a significant revenue release from its DC transmission business in Q4, which is projected to accelerate overall performance growth [7]. - Forecasts suggest that the net profit attributable to the parent company will reach 1.29 billion yuan and 1.76 billion yuan in 2024 and 2025, respectively, corresponding to price-to-earnings ratios of 23.5 and 17 times [7].