长虹华意：核心压缩机业务稳定增长，结构升级带动利润改善

Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [5]. Core Insights - The company's core compressor business has shown stable growth, with a significant improvement in profit margins driven by product structure upgrades [1][3]. - Despite a year-on-year decline in overall revenue of 13.01% to 6.73 billion yuan in H1 2024, net profit increased by 37.65% to 227 million yuan, indicating strong operational efficiency [1][4]. - The company has a robust cash position, with cash and cash equivalents plus trading financial assets amounting to 5.749 billion yuan, which is significantly higher than its market capitalization of 4.1 billion yuan [4]. Revenue Performance - In H1 2024, the revenue from refrigerator and freezer compressors grew by 10.72% year-on-year, while the overall revenue decline was attributed to a 61.31% drop in raw materials and components business [2]. - The company has focused on enhancing its product mix, particularly in the variable frequency and commercial markets, which has led to a higher proportion of high-value-added products [3]. Profitability Metrics - The gross margin for H1 2024 was 11.42%, an increase of 1.45 percentage points year-on-year, while the net margin improved to 4.76%, up 1.64 percentage points [3]. - The sales, management, R&D, and financial expense ratios for H1 2024 were 1.3%, 2.71%, 2.93%, and -0.69%, respectively, reflecting a mixed trend in operational efficiency [3]. Financial Forecast - The company is projected to achieve net profits of 440 million yuan, 500 million yuan, and 540 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 9.46x, 8.31x, and 7.60x [4][8].