Sunrise(SZ:300360) EBSCN·2024-08-29 11:10Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company achieved steady growth in H1 2024, with revenue of 1.015 billion yuan, a year-on-year increase of 18.78%, and a net profit of 341 million yuan, up 10.94% year-on-year [1]. - The company's smart metering and collection systems revenue grew by 20.20% to 816 million yuan, maintaining a high gross margin of 51.72% [1]. - The domestic demand for electric meters is expected to increase significantly in 2024, benefiting the company as a leading player in the smart meter market [1]. - The company's overseas revenue reached 130 million yuan, a year-on-year increase of 34.97%, with a gross margin of 49.44% [2]. - The company is actively expanding into Southeast Asia, Central Asia, and Africa, which is expected to contribute to future growth [2]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 1.015 billion yuan, a growth of 18.78% year-on-year, and a net profit of 341 million yuan, up 10.94% year-on-year [1]. - The second quarter of 2024 saw revenue of 547 million yuan, a year-on-year increase of 14.74%, and a net profit of 229 million yuan, up 22.33% year-on-year, with a quarter-on-quarter growth of 104.41% [1]. Business Segments - Smart metering and collection systems revenue increased by 20.20% to 816 million yuan, with a gross margin of 51.72% [1]. - Intelligent distribution and utilization products and systems revenue surged by 128.51% to 78 million yuan, with a gross margin of 19.39% [1]. - IoT sensors and accessories revenue rose by 111.39% to 63 million yuan, with a gross margin of 35.60% [1]. - Smart electric terminals and systems revenue decreased by 53.91% to 28 million yuan, with a gross margin of 45.38% [1]. - Smart flow meters and systems revenue fell by 44.35% to 23 million yuan, with a gross margin of 35.07% [1]. Market Outlook - The total number of electric meters tendered by the State Grid in 2023 was 76.24 million units, with a total bid amount of 23.3 billion yuan [1]. - The first batch of tenders for 2024 has already reached 46.53 million units and 12.4 billion yuan, indicating a significant increase in domestic demand for electric meters [1]. - The company is expected to benefit from the increased domestic demand for electric meters in 2024, despite a slight decrease in bid amounts due to competitive pricing [1]. Profitability and Valuation - The report maintains the profit forecast for the company, expecting net profits of 626 million yuan, 762 million yuan, and 886 million yuan for 2024, 2025, and 2026, respectively [2]. - The corresponding EPS for 2024, 2025, and 2026 is projected to be 1.22 yuan, 1.48 yuan, and 1.72 yuan [2]. - The current stock price corresponds to a PE ratio of 11, 9, and 8 for 2024, 2025, and 2026, respectively [2].