The company achieved net profit of 0.253 billion yuan to mother in 2024Q3, +98% year-on-year and +93% month-on-month. The company achieved revenue of 10.49 billion yuan in the first three quarters of 2024, +12% year-on-year; realized net profit to mother of 0.447 billion yuan, +101% year-on-year. The company's gross margin for the first three quarters of 2024 was 20.52%, +1.13pct year on year; net margin was 4.13%, 2.04 pct year on year. In 2024Q3, the company achieved revenue of 4.158 billion yuan, +10% year-on-month; realized net profit of 0.253 billion yuan to mother, +98% year-on-year and +93% month-on-month. 2024Q3's gross margin was 20.75%, +0.38pct year on year, -1.05pct month on month; net margin was 5.89%, +2.54 pct year on year, +1.88pct month on month.

The company's electric vehicle charging network business continues to improve. As of the end of September 2024, the company operated 0.64 million public charging terminals, maintaining the number one position in the industry. 2024Q3's charging capacity reached 3.53 billion degrees, +19% month-on-month; in the first three quarters of 2024, the company's cumulative charging volume reached 9.35 billion degrees, an increase of more than 40% over the previous year. The company continues to increase ecological cooperation on charging networks and expand industrial collaboration. The company has reached cooperation with many car companies such as Porsche, Audi, Mercedes-Benz, and BMW, and has built more than 1,700 car brand stations.

At the same time, the company has set up more than 160 joint ventures across the country, with government investment platforms and bus groups.

The company's intelligent manufacturing and system integration business has maintained steady growth. The company continued to make efforts on the power generation side, power grid side, and user side, focusing on various application scenarios of new power systems with new energy sources as the main focus, and deepening efforts around customer value creation; revenue increased significantly year-on-year in the first three quarters. On the power generation side, the company achieved rapid growth in bid amounts in the field of new energy power generation, and was successfully shortlisted for multiple energy storage box variable frame procurement. On the power grid side, the company continued to win steady bids in tenders such as national grid transmission and transformation and provincial grid distribution agreement inventory collection, etc., and achieved large-scale bidding for China Southern Power Grid's main grid equipment procurement and distribution grid equipment bidding and procurement. On the user side, the company has blossomed a lot in the fields of transportation, petroleum and coal chemicals, new materials, lithium batteries, etc.

Risk warning: Grid investment falls short of expectations; NEV sales fall short of expectations; industry competition increases risk.

Investment advice: Raise profit forecasts and maintain superior market ratings. Considering the rapid growth of the company's power equipment business and the continued improvement of Telco's operations, we raised our profit forecast. We expect the company to achieve net profit of 0.758/1.045/1.347 billion yuan in 2024-2026 (the original forecast was 0.688/0.935/1.223 billion yuan), +54%/+38%/+29%, EPS was 0.72/0.99/1.28 yuan, respectively; dynamic PE was 33/24/18 times, respectively.