ZJHM(SH:600987) CMS·2024-08-13 01:17Investment Rating - The report maintains a "Strong Buy" rating for the company [2][3]. Core Views - The company's revenue for Q2 2024 reached 2.471 billion yuan, representing a year-on-year growth of 7.35%, while the net profit attributable to shareholders was 170 million yuan, up 8.65% year-on-year [2]. - The dyeing business is steadily increasing, and the gold business has contributed to growth due to the consolidation of Shangjinyuan [2]. - The report forecasts net profits for 2024-2026 to be 768 million yuan, 839 million yuan, and 889 million yuan, respectively, with corresponding P/E ratios of 9.5X for 2024 and 9X for 2025 [3]. Financial Performance - For the first half of 2024, the company reported total revenue of 5.598 billion yuan, a year-on-year increase of 19.77%, and a net profit of 298 million yuan, up 6.44% [2]. - The dyeing business generated revenue of 1.935 billion yuan, a 5.88% increase year-on-year, while the gold business saw a sales volume of 32.96 tons, up 30.39% year-on-year, with revenue of 3.424 billion yuan, a 33.58% increase [2]. - The report indicates that the company's cash flow from operating activities increased by 66.37% year-on-year to 754 million yuan [2]. Revenue and Profit Forecast - The projected revenue for 2024-2026 is 11.831 billion yuan, 12.653 billion yuan, and 13.538 billion yuan, with year-on-year growth rates of 22%, 7%, and 7% respectively [3]. - The expected net profit for the same period is 768 million yuan, 839 million yuan, and 889 million yuan, with growth rates of 12%, 9%, and 6% respectively [3]. Valuation Metrics - The current market capitalization corresponds to a P/E ratio of 9.5X for 2024 and 9X for 2025, indicating a favorable valuation [3][5]. - The report highlights a projected return on equity (ROE) of 12% for 2024, with a gradual increase in subsequent years [6].