ShaanGu(601369) 天风证券·2024-08-29 07:33Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [3][11]. Core Insights - The company reported a revenue of 5.004 billion yuan for H1 2024, a year-on-year decrease of 3.51%, and a net profit attributable to shareholders of 458 million yuan, down 13.33% year-on-year [1]. - The company aims for a revenue target of 10.245 billion yuan for the full year 2024, representing a 1% increase year-on-year, and a net profit target of 1.036 billion yuan, reflecting a 1.6% increase year-on-year [2]. - The company is focusing on enhancing its core technology capabilities and professional service abilities, particularly in the context of the dual carbon strategy [2]. Financial Performance Summary - For H1 2024, the company achieved a gross margin of 23.38%, a decrease of 0.58 percentage points year-on-year, and a net profit margin of 9.16%, down 1.04 percentage points year-on-year [1]. - The company’s Q2 2024 revenue was 2.512 billion yuan, a slight decrease of 0.45% year-on-year, but an increase of 0.79% quarter-on-quarter [1]. - The company’s revenue from energy conversion equipment (compressors) was 2.65 billion yuan, down 16% year-on-year, while revenue from energy infrastructure operations (industrial gases) increased by 17% year-on-year to 1.87 billion yuan [1]. Earnings Forecast - The earnings forecast for the company has been adjusted, with expected net profits for 2024, 2025, and 2026 projected at 1.095 billion yuan, 1.219 billion yuan, and 1.345 billion yuan respectively [2]. - The corresponding price-to-earnings ratios for these years are estimated to be 11.55, 10.38, and 9.41 [2]. Market Position and Strategy - The company is leveraging its leading position in axial compressors and turbine expanders to enhance its technological capabilities and meet market demands [2]. - The introduction of innovative solutions in the casting sector and the metallurgical energy interconnection system is expected to drive performance improvements [2].