SUMEC(SH:600710) GF SECURITIES·2024-07-16 02:01Investment Rating - The report assigns a "Buy" rating for the company, with a current price of 8.09 CNY and a fair value of 9.29 CNY [14]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 11.1 billion CNY, 12.3 billion CNY, and 13.7 billion CNY for the years 2024 to 2026, representing year-on-year growth rates of 8.1%, 10.8%, and 10.8% respectively [38]. - The company has seen a significant increase in its domestic trade orders, with a reported 37% growth in the textile and garment sector [13]. - The company has successfully entered the Central and Eastern European markets, with a substantial backlog of orders in the shipbuilding sector [24]. Financial Summary - Revenue for 2022 was 141,148 million CNY, with a decline of 16.3% expected in 2023, followed by a projected recovery with growth rates of 4.9%, 7.8%, and 6.2% for 2024, 2025, and 2026 respectively [2]. - The EBITDA for 2023 is projected at 4,578 million CNY, with an expected increase to 5,312 million CNY in 2024 [2]. - The net profit attributable to shareholders is forecasted to be 1,030 million CNY in 2023, increasing to 1,113 million CNY in 2024 [2]. - The earnings per share (EPS) is expected to rise from 0.79 CNY in 2023 to 0.85 CNY in 2024 [2]. Operational Performance - The company reported a 12.04% increase in net profit for the first half of 2024, despite a 13.30% decline in revenue [26]. - The second quarter of 2024 showed a revenue decrease of 3.94% year-on-year, but net profit increased by 17.37% [26]. - The company continues to enhance its operational quality and focus on mainstream customers, leading to improved financial performance [13].