Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue and profit have slightly declined in the first half of 2024 due to weak demand in the railway market, with a revenue of 405 million yuan, down 7.02% year-on-year, and a net profit of 70 million yuan, down 3.53% year-on-year [2] - The gross margin has improved significantly, with a gross margin of 37.22%, up 2.67 percentage points year-on-year, while the net profit margin has also increased to 17.20%, up 0.62 percentage points year-on-year [3] - The trend of overseas expansion in the engineering machinery sector is confirmed, with rapid growth in the aftermarket business contributing to the company's profitability [4] - The company's net profit forecasts for 2024-2026 have been adjusted downwards due to the slowdown in railway demand, with projected net profits of 157 million yuan, 183 million yuan, and 219 million yuan respectively [4] Revenue and Profit Analysis - In H1 2024, the main machine product sales decreased by 10.63%, leading to a decline in overall revenue and profit levels [2] - The revenue from the railway market in H1 2024 was 230 million yuan, down 17.50% year-on-year, while the revenue from the water conservancy and hydropower market increased by 99.90% [2] Margin and Expense Analysis - The company's expense ratio increased slightly to 17.89%, with the sales expense ratio rising significantly due to increased market development efforts [3] - The gross margins for main products, aftermarket, and others were 35.85%, 44.48%, and 65.16% respectively, showing varying degrees of improvement [3] Future Outlook - The company is expected to benefit from the growth of its aftermarket services, which saw a significant increase in revenue by 153.35% year-on-year in H1 2024 [4] - The dynamic P/E ratios for the company are projected to be 9, 8, and 7 times for 2024, 2025, and 2026 respectively, indicating a favorable long-term growth potential [4]
五新隧装：2024年中报点评：业绩小幅下降，海外市场潜力巨大