TongDa Cable(SZ:002560) Zhongyuan Securities·2024-08-22 13:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index within the next six months [1][13]. Core Viewpoints - The company reported a revenue of 2.635 billion yuan for the first half of 2024, remaining flat year-on-year, while the net profit attributable to shareholders decreased by 59.38% to 36.78 million yuan [1][5]. - The company is expected to benefit from the recovery in demand for electric cables and the military sector, particularly with the C919 aircraft entering mass production [4][5]. - The report highlights that the company has achieved record-high new orders in the electric cable business, indicating a potential turnaround in revenue in the second half of 2024 [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 2.635 billion yuan, with a net profit of 36.78 million yuan, reflecting a significant decline compared to the previous year [1][6]. - The gross margin for the first half of 2024 was reported at 8.46%, down 1.35 percentage points year-on-year, while the net profit margin decreased to 1.65%, down 2.07 percentage points [1][5]. Business Segments - The electric cable segment generated 1.204 billion yuan in revenue, down 7.04% year-on-year, while the aluminum strip segment saw a slight increase of 1.56% to 1.247 billion yuan [1][3]. - The aerospace components processing segment experienced a revenue decline of 23.67% to 76 million yuan, attributed to slower recovery in military demand [4][5]. Market Outlook - The report emphasizes the steady growth in demand for electric cables, supported by significant investments in the power grid, with the State Grid planning to invest over 500 billion yuan in 2024 [3][4]. - The military sector is expected to see increased demand as the "14th Five-Year Plan" progresses, with the company positioned to benefit from this trend [4][5]. Earnings Forecast - The revenue forecasts for 2024 to 2026 have been adjusted to 6.175 billion yuan, 6.896 billion yuan, and 7.559 billion yuan, respectively, with net profit estimates revised to 142 million yuan, 210 million yuan, and 267 million yuan [5][6].