SMEIC(SH:600835) China Post Securities·2024-08-20 03:30Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2][5]. Core Insights - The company reported a revenue of 10.084 billion yuan for H1 2024, a decrease of 7.46% year-on-year, and a net profit attributable to shareholders of 526 million yuan, down 5.44% year-on-year [3][4]. - The decline in revenue and profit is primarily attributed to pressure in the new elevator market, which is closely linked to housing completion rates [3]. - The company's gross margin increased by 0.65 percentage points to 16.43%, while the expense ratio rose by 0.88 percentage points to 9.20% [3]. - The share of revenue from after-market services is gradually increasing, with a reported 34.45% in H1 2024, up from 32.04% in 2023 [3]. - The company is focusing on digital transformation and smart elevator solutions, enhancing its product offerings and operational efficiency [3]. Financial Summary - The projected revenues for 2024-2026 are 20.938 billion, 21.444 billion, and 22.898 billion yuan, with year-on-year growth rates of -6.20%, 2.42%, and 6.78% respectively [4]. - The net profit attributable to shareholders is expected to be 954 million, 1 billion, and 1.089 billion yuan for the same period, with growth rates of -4.59%, 4.89%, and 8.82% respectively [4]. - The price-to-earnings ratios for 2024-2026 are projected to be 12.20, 11.63, and 10.69 times [5].