China XD(601179) Huaan Securities·2024-12-06 12:36Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant growth in its performance, benefiting from the high demand for ultra-high voltage (UHV) construction and increased investment in the power grid [6] - The company reported a revenue of 15.162 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 6.94%, and a net profit attributable to shareholders of 0.787 billion yuan, up 45.33% year-on-year [5] - The projected net profits for the years 2024, 2025, and 2026 are expected to be 1.223 billion yuan, 2.020 billion yuan, and 2.510 billion yuan respectively, with corresponding P/E ratios of 33, 20, and 16 [6] Financial Performance - The company achieved a gross margin of 20.48% in the first three quarters of 2024, an increase of 3.73 percentage points year-on-year, with a single-quarter gross margin of 23.74%, up 3.91 percentage points quarter-on-quarter [5] - The net profit for the third quarter alone was 0.334 billion yuan, showing a remarkable year-on-year growth of 199.96% [5] - The company’s total market capitalization is 40.3 billion yuan, with a closing price of 7.87 yuan [1] Industry Context - The power grid investment in China has been growing rapidly, with a total investment of 398.2 billion yuan from January to September 2024, marking a year-on-year increase of 21.1% [6] - The company has been a leading player in the UHV sector, securing significant contracts, with a total bid amount of 36.24 billion yuan for UHV projects in 2024 [6]