XJEC(000400) 中原证券·2024-11-21 08:24Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [3] Core Views - The company's profitability continues to improve, supported by flexible direct current (DC) transmission systems, contributing to performance growth [2][3] - The company reported a revenue of 9.586 billion yuan for the first three quarters of 2024, a year-on-year decrease of 11.49%, while the net profit attributable to shareholders was 895 million yuan, an increase of 10.41% year-on-year [3] - The gross profit margin has been consistently rising, indicating enhanced profitability, with Q3 2024 gross margins recorded at 24.52% [3][6] Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 95.86 billion yuan, down 11.49% year-on-year, and a net profit of 8.95 billion yuan, up 10.41% year-on-year [3] - The company’s gross profit margin has shown a continuous upward trend, with Q1, Q2, and Q3 2024 margins at 18.27%, 22.74%, and 24.52% respectively [3][6] - The company’s operating cash flow for 2024 is projected to be 2.075 billion yuan, with net profit estimates for 2024, 2025, and 2026 at 1.558 billion yuan, 1.698 billion yuan, and 1.989 billion yuan respectively [13][14] Business Outlook - The company is expected to benefit from the acceleration of ultra-high voltage direct current (UHVDC) construction, with projected net profits for 2024, 2025, and 2026 being 1.278 billion yuan, 1.410 billion yuan, and 1.671 billion yuan respectively [6][12] - The company has secured a contract for the Gansu-Zhejiang ±800 kV UHVDC converter valve project, valued at 1.086 billion yuan, which is anticipated to enhance its performance [3][6] Market Position - The company is recognized as a leading player in the converter valve sector, with significant demand expected for flexible direct current projects, which are set to increase in the coming years [6][12] - The company’s market capitalization is currently 281.52 billion yuan, with a price-to-earnings ratio projected to decrease from 36.23 in 2022 to 17.03 by 2026 [3][14]