FORTUNE(SH:603173) Huaxin Securities·2024-08-28 13:11Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first recommendation [1]. Core Views - The company has a robust order intake, with new signed orders amounting to 2.18 billion yuan in H1 2024, indicating strong future revenue potential [1]. - Despite a slight decline in revenue of 3.99% year-on-year to 910 million yuan, the net profit attributable to shareholders increased by 9.89% to 104 million yuan, showcasing improved profitability [1]. - The company is benefiting from government policies aimed at promoting large-scale equipment updates, particularly in energy-intensive industries, which is expected to drive demand for its deep-cooling equipment [1]. - The international expansion strategy is yielding results, with successful projects in countries along the Belt and Road Initiative, although overseas revenue saw a decline of 37.34% to 232 million yuan due to geopolitical factors [1][3]. Summary by Sections Financial Performance - In H1 2024, the company reported operating revenue of 910 million yuan, a decrease of 3.99% year-on-year, while net profit attributable to shareholders was 104 million yuan, an increase of 9.89% [1]. - The gross profit margin for overseas operations was 32.06%, significantly higher than the domestic margin, which improved the overall profitability despite revenue challenges [1]. Market Outlook - The company forecasts revenues of 2.562 billion yuan, 3.075 billion yuan, and 3.691 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.60 yuan, 2.05 yuan, and 2.63 yuan [3]. - The projected PE ratios for the next three years are 11, 8, and 7 times, indicating a favorable valuation given the expected growth [3]. Strategic Initiatives - The company is enhancing its international business framework, with significant projects in the pipeline that are expected to bolster its competitive edge in global markets [1]. - The introduction of new policies by the government to support equipment upgrades is anticipated to create additional growth opportunities for the company [1].