ZJHM(SH:600987) GF SECURITIES·2024-08-14 02:38Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.94 CNY per share, based on a 12x PE ratio for 2024 [4]. Core Views - The company reported a revenue of 5.598 billion CNY for H1 2024, representing a year-on-year increase of 19.77%. The net profit attributable to shareholders was 298 million CNY, up 6.44% year-on-year, while the net profit excluding non-recurring items was 292 million CNY, an increase of 9.82% [1]. - In Q2 2024, the company achieved a revenue of 2.471 billion CNY, a year-on-year growth of 7.35%, with a net profit of 170 million CNY, up 8.65% year-on-year [1]. Business Segments Summary Printing and Dyeing Business - For H1 2024, the printing and dyeing segment generated revenue of 1.935 billion CNY, a year-on-year increase of 5.88%, with a total profit of 239 million CNY, up 5.59%. The sales profit margin was 12.37%, a slight decrease of 0.03 percentage points year-on-year [2]. - Despite challenges such as weak domestic demand and intense competition, the printing and dyeing business maintained stable growth [2]. Gold Jewelry Business - The gold jewelry segment reported revenue of 3.424 billion CNY for H1 2024, a significant year-on-year increase of 33.58%, with a total profit of 94 million CNY, up 49.26%. The sales volume of gold jewelry reached 32.96 tons, an increase of 30.39% year-on-year [2]. - The growth in the gold business was primarily driven by the acquisition of Shenzhen Shangjinyuan, which contributed 826 million CNY in revenue and 35 million CNY in profit for H1 2024 [2]. Financial Forecast - The company forecasts EPS of 0.74 CNY, 0.85 CNY, and 0.93 CNY for the years 2024, 2025, and 2026, respectively [3]. - Revenue is expected to grow from 11.834 billion CNY in 2024 to 14.366 billion CNY in 2026, with growth rates of 22.4%, 12.1%, and 8.3% for the respective years [3]. - The report indicates a stable EBITDA and net profit growth, with net profit projected to reach 783 million CNY in 2024, 890 million CNY in 2025, and 979 million CNY in 2026 [3].