Hainan Jinpan Smart Technology (SH:688676) EBSCN·2024-08-12 11:02Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company achieved a revenue of 2.916 billion yuan in H1 2024, a year-on-year increase of 0.79%, and a net profit of 222 million yuan, up 16.43% year-on-year [1] - The gross margin increased by 1.61 percentage points to 23.36%, while the net profit margin rose by 1.03 percentage points to 7.63% [1] - The company has accelerated its overseas market expansion, with foreign sales revenue reaching 791 million yuan, a year-on-year growth of 48.53%, and a backlog of foreign orders amounting to 2.849 billion yuan, up 180.16% year-on-year [1][2] - The global demand for power equipment is on the rise, benefiting the company's exports, particularly in transformers, which saw an export value of 19.6 billion yuan, a year-on-year increase of 27.9% [1] Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of 1.611 billion yuan, a year-on-year increase of 0.94% and a quarter-on-quarter increase of 23.50%, with a net profit of 128 million yuan, up 23.02% year-on-year and 35.06% quarter-on-quarter [1] - The company expects net profits for 2024-2026 to be 657 million, 1.004 billion, and 1.306 billion yuan respectively, with corresponding EPS of 1.44, 2.20, and 2.86 yuan [2][3] Market Expansion - The company has established a sales network in 86 countries and regions, forming stable partnerships with international firms like General Electric and Siemens [1] - The company is enhancing its global production capacity, particularly in North America and Europe, with plans for increased production in Mexico and Poland [1] New Business Development - The company has made significant progress in the energy storage market, generating 284 million yuan in revenue from energy storage products in H1 2024 [2] - The digital business is also expanding, with new orders for digital factory solutions amounting to 476 million yuan in H1 2024 [2]