CHANGHONG(SH:600839) Tai Ping Yang·2024-08-29 01:00Investment Rating - The report assigns a "Buy" rating for Sichuan Changhong, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [3][7]. Core Views - Sichuan Changhong reported a robust performance in Q2 2024, with a non-recurring net profit of 0.56 billion yuan, reflecting a year-on-year increase of 5.27% [2]. - The company achieved a total revenue of 51.42 billion yuan in H1 2024, marking a growth of 10.24% year-on-year, with a net profit of 0.28 billion yuan, up 38.71% [2]. - The company plans to distribute a high cash dividend of 0.50 yuan per 10 shares, totaling 0.231 billion yuan, which represents 82.30% of the net profit for H1 2024, aimed at boosting investor confidence [2][3]. Financial Summary - For H1 2024, the company’s revenue from home appliances, ICT products and services, and general equipment manufacturing were 22.376 billion yuan (+17.69%), 17.723 billion yuan (+16.31%), and 5.517 billion yuan (+11.25%) respectively [2]. - The domestic and overseas revenues for H1 2024 were 38.168 billion yuan (+9.01%) and 12.766 billion yuan (+14.66%) respectively, with overseas performance being particularly strong [2]. - The company’s gross margin for Q2 2024 was 9.70%, a decrease of 2.14 percentage points year-on-year, attributed to rising costs of key components and shipping [2][5]. - The projected revenue for 2024 is 105.057 billion yuan, with a net profit of 0.875 billion yuan, and an expected EPS of 0.19 yuan [4][5].