Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved a slight decline in revenue in H1 2024, but significant breakthroughs were made in the water conservancy, hydropower, and mining sectors [3] - The company's H1 2024 revenue was CNY 405 million, down 7.02% year-on-year, while the net profit attributable to the parent company was CNY 70 million, down 3.53% year-on-year [2][3] - The comprehensive gross margin for H1 2024 was 37.22%, an increase of 2.67 percentage points year-on-year [2][3] Summary by Sections Revenue and Profitability - The company's revenue and net profit showed a slight decline primarily due to a decrease in railway market revenue, which fell by 17.50% to CNY 230 million [3] - Positive growth was observed in the highway, water conservancy, and mining sectors, with highway revenue increasing by 4.45% to CNY 137 million, water conservancy revenue doubling to CNY 18 million (up 99.90%), and mining revenue rising by 25.91% to CNY 16 million [3] - The main machine market revenue decreased by 10.63% to CNY 368 million, while the aftermarket revenue surged by 153.35% to CNY 25 million, driven by expanded maintenance and parts sales [3] Market Performance - The company's stock performance relative to the North Exchange 50 index showed a 1-month increase of 2.02%, a 3-month decline of 28.78%, and a 12-month increase of 57.01% [3] - As of August 28, 2024, the current stock price was CNY 15.12, with a 52-week price range of CNY 14.38 to CNY 19.98 [3] Future Outlook - The railway infrastructure market is expected to recover, with the company positioned to benefit from increased demand for its drilling and blasting equipment [6] - The water conservancy market is projected to grow significantly, with plans to double the installed capacity of pumped storage by 2025 [6] - The mining sector is also anticipated to expand due to automation trends and the company's innovative drilling solutions [6] - The company has established a wholly-owned subsidiary for international trade to enhance its overseas market presence [6] Financial Projections - The company forecasts revenues of CNY 1.02 billion, CNY 1.35 billion, and CNY 1.63 billion for 2024, 2025, and 2026, respectively [6][7] - Projected net profits for the same years are CNY 173 million, CNY 227 million, and CNY 279 million, with corresponding P/E ratios of 7.86, 5.99, and 4.88 [7][9]
五新隧装：2024年半年报点评：2024H1盈利能力提升，水利水电、矿山等增量市场取得突破