Grainger(US:GWW) Soochow Securities international·2024-08-09 09:01Investment Rating - The report maintains a rating of "Buy" for the company, indicating an expected relative price increase of 5% to 15% over the next six months [12]. Core Insights - The company's performance in Q2 2024 showed steady growth, with revenue increasing by 3.1% year-on-year to $4,312 million, and operating profit rising by 0.6% to $665 million. Earnings per share (EPS) grew by 5.2% to $9.76 [2]. - The HTS business continues to outperform the industry, with a revenue growth of 3.1% to $3,458 million, slightly above the industry growth rate of 2.5% to 3.0% [2]. - The EA business faced challenges due to yen depreciation, with revenue growth of 3.3% to $776 million, but local currency growth for MonotaRo was 13.2% [2]. - The company has revised its 2024 performance guidance, now expecting a revenue growth of approximately 3.2% to 5.2%, down from a previous estimate of 4.3% to 7.3% [2]. - The company is projected to achieve revenue growth of 4.3% in 2024, 6.1% in 2025, and 7.1% in 2026, with corresponding net profit growth of 2.2%, 9.6%, and 10.3% respectively [2]. Financial Projections - For 2023A, the company reported revenue of $16,478 million, with projections of $17,194 million for 2024E, $18,239 million for 2025E, and $19,539 million for 2026E, reflecting year-on-year growth rates of 8.2%, 4.3%, 6.1%, and 7.1% respectively [1][4]. - The net profit attributable to shareholders for 2023A was $1,829 million, with forecasts of $1,870 million for 2024E, $2,050 million for 2025E, and $2,261 million for 2026E, indicating growth rates of 18.2%, 2.3%, 9.6%, and 10.3% respectively [1][4]. - The projected earnings per share (EPS) are $37.46 for 2023A, $38.30 for 2024E, $41.99 for 2025E, and $46.30 for 2026E [1][4].