TONGLI RISHENG(SH:605286)2024-07-25 10:02Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for its stock performance in the near term [9][16]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 111.47 million to 126.33 million yuan in the first half of 2024, representing a year-on-year increase of 50% to 70%. The net profit after deducting non-recurring gains and losses is projected to be between 109.44 million and 124.30 million yuan, reflecting a growth of 83% to 108% [1]. - The subsidiary Tianqi Hongyuan has a robust project pipeline, with profits from wind and solar power station development and energy storage business beginning to materialize. Key projects include a 100MW wind power project in Tianjin and a 300MW wind-storage-hydrogen integrated project in Chengde [2]. - The company has shown confidence in its growth by increasing its dividend payout ratio to 30% in 2023 and executing a share buyback plan, acquiring 1,799,300 shares, which is 1.02% of total shares [5]. Financial Projections - Revenue is projected to grow from 3.05 billion yuan in 2024 to 5.62 billion yuan in 2026, with year-on-year growth rates of 25.37%, 47.95%, and 24.51% respectively. Net profit attributable to shareholders is expected to rise from 252.37 million yuan in 2024 to 510.77 million yuan in 2026, with growth rates of 16.22%, 61.90%, and 25.01% respectively [9][10]. - The earnings per share (EPS) is forecasted to increase from 1.43 yuan in 2024 to 2.90 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 14, 9, and 7 times [9][10]. Business Development - The company is actively responding to the slowing growth in the elevator industry by developing new elevator models and enhancing production capabilities for high-margin products. It has established a non-standard division to focus on customized elevator components [15]. - The company is also expanding its overseas presence, with projects like the microgrid system in Kenya and participation in the World Bank's "Lighting Africa" initiative [2].