Shanghai Bloom Technology (SH:603325) Guohai Securities·2024-08-27 14:38Investment Rating - The investment rating for the company is "Accumulate" (downgraded) [1][4]. Core Views - The company's revenue and net profit decreased in the first half of 2024 due to project progress issues, but there was a recovery in Q2 with a 59.15% increase in revenue and a 153.57% increase in net profit compared to Q1. The company has a strong order backlog of 4.92 billion yuan, which supports future performance [1][4]. - The domestic market is expected to maintain high demand due to new projects and upgrades in the petrochemical and chemical industries, while overseas markets are expanding as well. The company is well-positioned to benefit from these trends [4][5]. - The company has a solid cash flow situation, with a net cash flow from operating activities of 353 million yuan in the first half of 2024, up 95.06% year-on-year [1][4]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 368 million yuan, a year-on-year decrease of 34.86%, and a net profit of 99 million yuan, down 25.91% year-on-year. The adjusted net profit was 75 million yuan, down 41.10% year-on-year [1][4]. - The comprehensive gross margin for H1 2024 was 30.10%, a slight decrease of 1.53 percentage points year-on-year [1][4]. Market Outlook - The domestic market is seeing a shift towards larger and integrated petrochemical projects, with significant investment expected in equipment upgrades and new projects. The company is also expanding its presence in overseas markets, particularly in oil-producing countries [4][5]. - The company is advancing its fundraising projects, with an investment of 347.66 million yuan as of June 30, 2024, which will enhance its production capacity and expand application areas for its pneumatic conveying products [4][5]. Earnings Forecast - The company is projected to achieve revenues of 1.62 billion yuan, 2.23 billion yuan, and 2.73 billion yuan for 2024, 2025, and 2026, respectively. The corresponding net profits are expected to be 342 million yuan, 478 million yuan, and 568 million yuan [5][6].