山西证券：研究早观点-20241128

Group 1: Market Overview - The overall electricity consumption in 2024 Q3 reached 27,520 billion kWh, representing a year-on-year growth of 7.7% [7] - The electricity sector's revenue for 2024 Q3 was 439.4 billion yuan, an increase of 1.6% year-on-year, with hydropower showing the highest growth rate of 8.4% [8] - The coal-fired power sector's revenue showed signs of recovery, with a year-on-year increase of 0.09% in Q3, despite a 1.9% decline in the first three quarters of 2024 [9] Group 2: Company Performance - The report indicates that Huaxiang Co., Ltd. achieved a revenue of 2.787 billion yuan in Q3 2024, marking an 18.45% increase year-on-year, and a net profit of 341 million yuan, up 21.18% [23] - The company's gross margin decreased by 2.55 percentage points to 22.17%, primarily due to changes in electricity subsidies and financial reporting [26] - The company is expanding its investment in precision machining for compressor components, which is expected to enhance profitability [27] Group 3: Investment Strategy - The report suggests a positive outlook for the coal-fired power sector, anticipating continued recovery in Q4, supported by stable fuel prices and reduced competition from hydropower [14] - The investment strategy highlights the potential for growth in the automotive parts sector, particularly through partnerships with major clients like Huayu Automotive [26] - The forecast for Huaxiang Co., Ltd. indicates a projected net profit growth of 21.8% to 4.7 billion yuan in 2024, with an EPS of 1.0 yuan [28]