SUMEC(SH:600710) Guotai Junan Securities·2024-07-10 14:01Investment Rating - The report maintains a rating of "Buy" for the company [8][24]. Core Views - The report highlights that the company's H1 revenue is approximately 55.93 billion yuan, a decrease of 13.3%, while the net profit attributable to shareholders is 570 million yuan, an increase of 12% [2][7]. - The report anticipates EPS growth of 6%, 11%, and 8% for the years 2024, 2025, and 2026, respectively, with a target price set at 10.42 yuan [2][8]. - The company has shown improved performance in Q2, with a revenue of approximately 32.18 billion yuan, down 3.9%, and a net profit of 305 million yuan, up 17.4% [2][7]. Financial Performance Summary - H1 revenue decreased by 13.3% to approximately 55.93 billion yuan, while net profit increased by 12% to 570 million yuan [2][7]. - The report estimates that the net profit margin for H1 is approximately 1.02%, an increase of 0.23 percentage points [2][7]. - The company has a projected net profit of 1.087 billion yuan for 2024, reflecting a growth of 5.6% [10]. Business Segment Performance - The report indicates that the shipbuilding and shipping, ecological environment, and textile and apparel sectors have performed well, contributing to the overall profit growth [2][7]. - The company has secured multiple orders in the shipbuilding sector, with a total of 94 vessels ordered, indicating strong future growth potential [2][7]. - The report notes that the supply chain segment has seen a narrowing revenue decline and further optimization of profit margins [2][7]. Valuation and Dividend - The company is characterized as a low-valuation, high-dividend central enterprise, with a dividend payout of 431 million yuan and a dividend rate of 41.9% [2][7]. - The current PE ratio is noted to be 8.9 times, indicating that the stock is undervalued [2][7].