远东股份：盈利能力承压，智慧机场前景可期

Investment Rating - The investment rating for the company is "Buy" [1][2]. Core Views - The company is a leading player in the cable industry and is expected to benefit from the increasing industry concentration and its long-standing technical reserves in submarine cables, which may contribute to new growth [2]. - The company has a robust order book in its smart airport business, indicating promising future prospects [2]. - Due to intensified competition in the battery sector, the company has developed differentiated competitive strategies and anticipates gradual recovery as lithium carbonate prices stabilize [2]. Financial Performance - In the first half of 2024, the company achieved revenue of 11.345 billion yuan, a year-on-year increase of 9.41%, while the net profit attributable to the parent company was -130 million yuan, a decline of 140.66% [1]. - The smart cable network business generated revenue of 10.287 billion yuan in 24H1, up 5.98% year-on-year, but net profit fell by 72.78% due to rising copper prices affecting cable gross margins [1]. - The company secured over 10 million yuan in contract orders amounting to 10.412 billion yuan, indicating a strong backlog of orders [1]. Future Projections - The company forecasts net profits attributable to the parent company for 2024, 2025, and 2026 to be 455 million yuan, 751 million yuan, and 1.018 billion yuan, respectively, with corresponding EPS of 0.21 yuan, 0.34 yuan, and 0.46 yuan [2][3]. - The projected P/E ratios for the same years are 18, 11, and 8 times, respectively [2]. Operational Developments - The company is actively advancing major industrial projects, including the construction of the Far East Nantong submarine cable smart lighthouse factory and participation in significant high-voltage transmission projects [1]. - In the clean energy sector, the company is seizing opportunities for equipment exports and participating in major international wind farm projects [1]. R&D and Shareholder Confidence - The company increased its R&D investment to 355 million yuan in 24H1, a year-on-year increase of 17.59%, while maintaining stable expense ratios across various operational areas [1]. - The company plans to repurchase shares worth 150 million to 200 million yuan, and the chairman intends to increase his stake by 30 million to 50 million yuan, reflecting confidence in the company's future [2].