Linyang Energy(601222) 德邦证券·2024-08-21 08:10Investment Rating - The report maintains a "Buy" rating for Lin Yang Energy (601222 SH) [2] Core Views - Lin Yang Energy's three major business segments are developing steadily with active overseas market expansion [2] - The company achieved revenue of 3 463 billion yuan in H1 2024 a YoY increase of 7 86% and net profit of 599 million yuan a YoY growth of 3 02% [2] - The smart meter segment strengthened domestic layout and expanded overseas markets with total contract value exceeding 800 million yuan in H1 2024 [3] - The new energy power station business accelerated construction with over 200MW newly connected to the grid and over 500MW new projects started in H1 2024 [3] - The energy storage business delivered nearly 3 5GWh of systems with over 6GWh of projects in the pipeline actively expanding in overseas markets [4] Financial Performance - Revenue is expected to grow from 9 222 billion yuan in 2024 to 16 937 billion yuan in 2026 with a CAGR of 34 2% 47 4% and 24 6% respectively [4] - Net profit is projected to increase from 1 167 billion yuan in 2024 to 1 494 billion yuan in 2026 with growth rates of 13 1% 18% and 8 5% respectively [4] - The company's gross margin is expected to decline from 27% in 2024 to 24% in 2026 [7] - ROE is forecasted to improve from 7 1% in 2024 to 7 7% in 2026 [7] Business Segments Smart Meter Business - Secured 322 million yuan in State Grid tenders and 322 million yuan in Southern Grid tenders in H1 2024 [3] - Expanded to over 30 countries and regions with cumulative orders exceeding 1 billion yuan in the Middle East [3] New Energy Business - Total contracted operation and maintenance capacity reached 14 65GW as of June 2024 a 50% YoY increase [3] - Expanded business to northwest and southwest China offering comprehensive services including smart O&M platforms and power trading [3] Energy Storage Business - Delivered nearly 3 5GWh of energy storage systems with over 6GWh of projects in the pipeline [4] - Accelerated project layout across multiple provinces in China and secured nearly 1GWh of shared energy storage projects [4]