CSICPCL(600482) 长江证券·2024-07-12 11:01Investment Rating - The report maintains a "Buy" rating for China Power (600482.SH) [8][7] Core Views - The company's operating performance exceeded expectations, with a projected net profit attributable to shareholders of 459-516 million yuan for the first half of 2024, representing a year-on-year increase of 60%-80% [5][6] - The non-recurring net profit is expected to be 383-437 million yuan, showing a significant year-on-year growth of 180%-220% [5][6] - The company is experiencing rapid growth in main engine orders, with product structure optimization leading to improved gross margins and profitability [6] - The sales scale of the diesel engine segment is expected to continue expanding in the first half of 2024, with prices and gross margins of main products, such as marine low-speed engines, increasing simultaneously [6] - The company is well-positioned to benefit from the rising shipbuilding sector and the ongoing promotion of dual-fuel technology in domestic shipbuilding [6] Summary by Sections Performance Forecast - China Power anticipates a net profit of 459-516 million yuan for H1 2024, an increase of 172-230 million yuan compared to the same period last year, reflecting a growth of 60%-80% [5] - The expected non-recurring net profit is 383-437 million yuan, up by 246-301 million yuan year-on-year, indicating a growth of 180%-220% [5] Market Dynamics - The global new ship price index has been rising since 2021, reaching 187.23 points by June 2024, a year-on-year increase of 9.5% [6] - The increase in ship prices is expected to drive up the prices of marine engines, enhancing the company's profitability [6] Competitive Advantages - The company benefits from its strong ties with China Shipbuilding Group, which holds a significant share of new civil ship orders in the country [6] - The company’s subsidiary, China Ship Diesel Engine, maintains the top market share in the marine low-speed engine sector [6] - The ongoing development of dual-fuel technology positions the company favorably in the market, with increasing sales of dual-fuel main engines contributing to revenue growth [6]