Ping An Securities·2025-11-06 10:37Investment Rating - The report maintains a "Recommended" investment rating for the company [1][10][14] Core Views - The company has shown steady growth in the rail transit sector and is capitalizing on opportunities in emerging equipment fields [1][10] - For the first three quarters of 2025, the company achieved revenue of 18.83 billion yuan, a year-on-year increase of 14.86%, and a net profit attributable to shareholders of 2.72 billion yuan, up 10.85% year-on-year [5][9] - The company is positioned as a leading supplier of traction and conversion systems in China's rail transit industry, with a focus on domestic market leadership and breaking international monopolies [10] Financial Performance Summary - Revenue and Profitability: - Revenue for 2025 is projected to reach 27.60 billion yuan, with a year-on-year growth of 10.8% [7][12] - Net profit for 2025 is estimated at 4.31 billion yuan, reflecting a year-on-year increase of 16.3% [7][12] - Gross margin is expected to be around 32.0% in 2025, with a net margin of 15.6% [12] - Earnings Per Share (EPS): - EPS is projected to be 3.17 yuan for 2025, increasing to 4.00 yuan by 2027 [7][12] - Valuation Ratios: - Price-to-Earnings (P/E) ratio is expected to decrease from 19.0 in 2024 to 12.9 in 2027 [12] - Price-to-Book (P/B) ratio is projected to decline from 1.7 in 2024 to 1.3 in 2027 [12] Revenue Breakdown - Rail Transit Equipment: - Revenue from rail transit equipment reached 10.30 billion yuan in the first three quarters of 2025, a growth of 9.23% year-on-year [9][10] - Emerging Equipment: - Revenue from emerging equipment products was 8.43 billion yuan, with a year-on-year increase of 22.26% [9][10] Future Outlook - The company is expected to continue its growth trajectory, with net profits projected at 4.31 billion yuan in 2025, 4.90 billion yuan in 2026, and 5.43 billion yuan in 2027 [10][11] - The focus on expanding into new sectors such as basic components, electric drive systems for new energy vehicles, and renewable energy generation is anticipated to create new growth points [10]