Hainan Jinpan Smart Technology (SH:688676) EBSCN·2024-08-12 11:38Investment Rating - The report maintains a "Buy" rating for the company, Jinpan Technology (688676.SH) [2][3]. Core Insights - 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]. 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% [1]. - The net profit for Q2 2024 was 128 million yuan, reflecting a year-on-year growth of 23.02% and a quarter-on-quarter growth of 35.06% [1]. Market Dynamics - The global demand for electrical equipment is experiencing significant growth, driven by the rapid development of renewable energy and aging infrastructure [1]. - China's transformer export value reached 19.6 billion yuan in H1 2024, marking a year-on-year increase of 27.9%, with strong growth in exports to Europe and North America [1]. Business Development - The company has established a robust overseas sales network, with its products and services now available in 86 countries and regions [1]. - The company is expanding its production capacity in Mexico and has completed the layout of its factory in Poland, with plans to be operational by Q4 2024 [1][2]. New Business Areas - The company has made significant strides in the energy storage market, generating 284 million yuan in revenue from energy storage products in H1 2024 [2]. - The digital business segment has also seen growth, with new orders for digital factory solutions amounting to 476 million yuan in H1 2024 [2].