Linyang Energy(601222) 光大证券·2024-08-22 01:37Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a revenue of 3.463 billion yuan for H1 2024, a year-on-year increase of 7.86%, and a net profit attributable to shareholders of 599 million yuan, up 3.02% year-on-year [1]. - The electric meter business showed strong performance with a revenue of 1.15 billion yuan in H1 2024, a 12% increase year-on-year, and a gross margin of 39%, up 4 percentage points from the previous year [2]. - The energy storage business saw a revenue of 740 million yuan in H1 2024, a decrease of 25% year-on-year, but with an improved gross margin of 20%, up 4 percentage points from the previous year [2]. - The renewable energy business generated 948 million yuan in revenue in H1 2024, with a gross margin of 16%, an increase of 5 percentage points year-on-year [2]. - The company is expected to achieve net profits of 1.174 billion yuan, 1.379 billion yuan, and 1.623 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 11, 9, and 8 times [2]. Summary by Sections Financial Performance - H1 2024 revenue: 3.463 billion yuan, up 7.86% YoY; net profit: 599 million yuan, up 3.02% YoY; Q2 revenue: 1.909 billion yuan, down 11.04% YoY [1]. - Electric meter revenue: 1.15 billion yuan in H1 2024, up 12% YoY; gross margin: 39%, up 4 percentage points [2]. - Energy storage revenue: 740 million yuan in H1 2024, down 25% YoY; gross margin: 20%, up 4 percentage points [2]. - Renewable energy revenue: 948 million yuan in H1 2024; gross margin: 16%, up 5 percentage points [2]. Market Opportunities - The company secured approximately 3.22 billion yuan in bids for electric meters from State Grid and Southern Grid in 2024 [2]. - The overseas market is expanding, with over 800 million yuan in contracts won by the subsidiary EGM and a strategic partnership with ECC in the Middle East [2]. - The energy storage joint venture with ECC in Saudi Arabia is expected to commence production in Q4 2024 [2]. Profit Forecast and Valuation - The company is projected to achieve net profits of 1.174 billion yuan, 1.379 billion yuan, and 1.623 billion yuan for 2024, 2025, and 2026 respectively [2]. - Current stock price corresponds to P/E ratios of 11, 9, and 8 for the years 2024, 2025, and 2026 [2].