DEPPON(SH:603056) Guohai Securities·2024-08-18 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6]. Core Views - The report highlights stable revenue and profit growth, with expectations for performance elasticity driven by network integration [2][3]. - In the first half of 2024, the company achieved operating revenue of 18.446 billion yuan, a year-on-year increase of 17.54%, and a net profit attributable to shareholders of 333 million yuan, up 37.08% [3]. - The second quarter of 2024 saw operating revenue of 9.151 billion yuan, a year-on-year growth of 10.58%, and a net profit attributable to shareholders of 240 million yuan, reflecting a 41.07% increase [3][4]. Summary by Sections Financial Performance - The company reported a gross margin of 8.85% in Q2 2024, a decrease of 1.04 percentage points year-on-year, with costs accounting for 91.16% of revenue, down 1.05 percentage points [5]. - The company expects revenue growth of over 15% for 2024, supported by stable internal growth and the advancement of network integration projects [4][5]. Operational Highlights - Key drivers for revenue growth include enhanced product competitiveness, operational model transformation, and steady progress in network integration projects [4][5]. - The company has seen a significant reduction in damage rates by 28.3% and complaint rates by 43.6% in the first half of 2024 [4]. Earnings Forecast - The earnings forecast for 2024-2026 estimates operating revenues of 42.048 billion yuan, 46.284 billion yuan, and 50.834 billion yuan, with year-on-year growth rates of 16%, 10%, and 10% respectively [6][7]. - Net profits attributable to shareholders are projected to be 1.056 billion yuan, 1.270 billion yuan, and 1.431 billion yuan for the same period, with growth rates of 42%, 20%, and 13% respectively [6][7].