配用电和医疗双主业齐发力，各板块营收均保持高速增长。1）配用电板块：公司国内电网中标持续领先，网外行业平台客户持续开拓；海外用电业务加大对系统解决方案项目的推动力度，海外配电业务继2023 年首次突破中东市场后，今年又在欧洲、美洲取得首单，前三季度智能配用电营业收入同比增长26.5%。2）医疗服务板块：公司夯实康复领域先发优势，完善连锁医疗体系。受益于医院整体经营管理持续增强，康复医院家数及单店经营同步提升，前三季度医疗服务营业收入同比增长21.7%。Brief performance review
On October 24, 2024, the company disclosed its three-quarter report. In the first three quarters, the company achieved revenue of 10.43 billion yuan, +25.1%; net profit to mother of 1.82 billion yuan, +21.9%; net profit after deducting non-return to mother of 1.75 billion yuan, +31.3% year over year; gross profit margin 36.2%, year-on-year. Q3 achieved revenue of 3.44 billion yuan, a year-on-year increase of 23.2%; net profit to mother was 0.67 billion yuan, +7.4% year over year, of which other non-current financial assets confirmed fair value change income and investment income of -0.025 billion yuan, which turned negative year-on-year; net profit after deducting non-attributable net profit of 0.67 billion yuan, +30.0% year over year, and revenue and net profit without return to mother increased in line with expectations.
Management analysis
The two main industries, electricity distribution and medical care, are making concerted efforts, and revenue in all sectors has maintained rapid growth. 1) Distribution sector: The company's domestic power grid continues to lead the bid, and off-grid industry platform customers continue to develop; the overseas electricity business is increasing its drive for system solution projects. After breaking through the Middle East market for the first time in 2023, the overseas power distribution business obtained its first orders in Europe and America this year. The revenue of intelligent distribution electricity increased 26.5% year-on-year in the first three quarters. 2) Medical service sector: The company consolidates its first-mover advantage in the field of rehabilitation and improves the chain medical system. Benefiting from the continued strengthening of the overall operation and management of hospitals, the number of rehabilitation hospitals and the simultaneous increase in single store operations, medical service revenue increased 21.7% year-on-year in the first three quarters.
The cumulative number of domestic and foreign orders in hand is full, and the overseas power distribution business is gradually being fulfilled. In the first three quarters, the company accumulated orders of 15.62 billion yuan, +35.2% over the same period last year. Among them, the cumulative number of domestic orders in hand was 9.37 billion yuan, +35.1% year on year, and the cumulative number of overseas orders in hand was 6.25 billion yuan, +35.3% over the same period last year. The company focused on system integration projects overseas to promote overseas distribution. In the first three quarters, overseas distribution orders totaled 0.96 billion yuan, +273% over the same period. Rapid breakthroughs were achieved in Europe, America and other places, and the results of the overseas distribution business were gradually realized.
Profitability continues to increase, and sales/management/R&D expense rates are rising. The company's overall gross profit margin in the first three quarters was 36.2%, an increase of 2.6 pct over the previous year, mainly due to: 1) the company's intelligent power distribution sector increased efficiency through continuous technological innovation and internal cost reduction, and 2) the share of rehabilitation services in the medical sector increased. The company's sales expense ratio for the first three quarters was 6.8%, +0.7 pct year on year, 6.3% management expense ratio, +0.1 pct year on year, R&D expenses rate 4.0%, and +0.1 pct year on year.
Profit Forecasts, Valuations, and Ratings
Considering the significant increase in the scale of the company's domestic and overseas business in the electricity distribution sector and the continuous consolidation of the medical care chain, we expect the company to achieve operating income of 14.683/18.569/22.539 billion yuan in 24-26, an increase of 28/27/ 21%; achieve net profit of 2.38/2.98/3.62 billion yuan, an increase of 25/25/ 21%. The current price of the company's stock corresponds to a PE valuation of 20/16/13, maintaining a “buy” rating.
Risk warning
Power grid investment falls short of expectations, overseas business expansion falls short of expectations, hospital expansion falls short of expectations, risk of medical malpractice disputes, impairment of goodwill, changes in medical policies, exchange rate fluctuations
