JEMC(SZ:000922) Guoxin Securities·2024-08-19 03:00Investment Rating - The investment rating for the company is "Outperform the Market" [3][9]. Core Views - The company's revenue for the first half of 2024 decreased by 6.43% year-on-year to 2.481 billion yuan, while the net profit attributable to shareholders fell by 19.57% to 175 million yuan, primarily due to weak demand in the motor business and intensified competition leading to price pressures. However, the nuclear power business experienced rapid growth with a revenue increase of 132.53% year-on-year to 554 million yuan [1][2]. - The company plans to raise up to 1.112 billion yuan through a private placement to improve its financial situation and reduce its debt ratio. The acquisition of a 51% stake in Harbin Electric Equipment Group further strengthens its competitive position in the nuclear power sector [1][2][3]. - The company is expected to maintain high growth in its nuclear power business over the next three years, despite a downward adjustment in profit forecasts for 2024-2026 due to weak demand in the motor sector [1][2]. Financial Performance Summary - For the first half of 2024, the company's gross margin was 22.94%, and the net margin was 8.41%, with a slight year-on-year change of +0.20 and -1.08 percentage points, respectively [1]. - The company's contract liabilities increased by 8.12% year-on-year to 1.495 billion yuan, indicating a healthy backlog of orders [1]. - The revenue from the motor and service segment was 1.867 billion yuan, down 20.80% year-on-year, while the nuclear power segment's revenue was 554 million yuan, reflecting a significant growth trend [1][2]. Earnings Forecast and Financial Metrics - The projected net profits for 2024, 2025, and 2026 are 390 million yuan, 475 million yuan, and 624 million yuan, respectively, with corresponding P/E ratios of 19, 15, and 12 [2][7]. - The company's revenue is expected to recover in 2025 and 2026, with growth rates of 14.3% and 17.2%, respectively, following a decline in 2024 [2][7].