QRUNNINGCABLE(BJ:834682) KAIYUAN SECURITIES·2024-08-24 11:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company is expected to achieve a 13% increase in net profit attributable to shareholders in 2023, with plans to enter the 500kV cable market to enhance its competitive edge [2] - The company reported a revenue of 1.633 billion yuan in H1 2024, representing a year-on-year growth of 14.08%, and a net profit of 58.48 million yuan, up 1.37% [2][3] - The company is recognized as a national-level specialized and innovative "little giant" enterprise in the wire and cable industry [2] Financial Performance - In H1 2024, the company generated revenue of 1.487 billion yuan from power cables, a growth of 13.15%, and 133 million yuan from electrical equipment, up 17.80% [3] - The gross margin for power cables slightly decreased by 0.65 percentage points to 12.73% due to fluctuations in copper prices [3] - The company achieved a significant revenue increase of 34.36% in the East China region, driven by sales to major power companies and foreign trade clients [3] Research and Development - The company is advancing the research and development of 500kV ultra-high voltage cables and has received 6 national patent authorizations and 1 software copyright [4] - The company completed several technical innovation projects, including optimizing the gas removal process for high-voltage cable insulation cores [4] Market Outlook - The State Grid is expected to invest 600 billion yuan in the power grid in 2024, a 13.4% increase, which is anticipated to provide ongoing business momentum for the company [4] - The company is well-positioned to benefit from the large-scale upgrade and renovation of power grid equipment, projected to grow by 52% by 2027 [4]