DEC(600875) 光大证券·2024-08-31 04:13Investment Rating - A-shares: Buy (maintained) [2] - H-shares: Buy (maintained) [2] Core Views - The company's new effective order scale is steadily growing, with plans to further increase the dividend ratio [2][3] - Clean and efficient energy equipment revenue is growing rapidly, but coal power equipment gross margin is under pressure due to low-price order deliveries [2] - Renewable energy equipment revenue is stable, with subsidiary Dongfang Wind Power turning a profit [2] - The company expects to achieve net profits of 3.8/5.0/6.0 billion yuan in 2024-2026, with A/H-share PE ratios of 11/7 times for 2024 [3] Financial Performance - 2024H1 revenue: 33.457 billion yuan, up 11.84% YoY; net profit: 1.691 billion yuan, down 15.52% YoY [2] - 2024Q2 revenue: 18.404 billion yuan, up 21.09% YoY; net profit: 786 million yuan, down 20.08% YoY [2] - Clean and efficient energy equipment revenue: 14.065 billion yuan, up 41.03% YoY [2] - Renewable energy equipment revenue: 8.215 billion yuan, up 18.59% YoY [2] Order Growth - New effective orders in 2024H1: 56.073 billion yuan, up 14.77% YoY [3] - New effective orders in 2024 Jan-Jul: 62.783 billion yuan, up 19.2% YoY [3] - Coal power/hydropower/power station service new orders grew by over 37%/102%/30% YoY [3] Profitability and Valuation - 2024E net profit: 3.815 billion yuan, down 13% from previous forecast [3] - 2024E EPS: 1.22 yuan, with A/H-share PE ratios of 11/7 times [3] - 2024E ROE: 9.64%, expected to rise to 13.01% by 2026 [4] Business Segments - Clean and efficient energy equipment gross margin: 16.70%, down 1.43 pct YoY [2] - Renewable energy equipment gross margin: 8.84%, down 3.65 pct YoY [2] - Wind power equipment gross margin: 7.44%, down 2.86 pct YoY [2] - Hydropower equipment gross margin: 15.93%, down 3.99 pct YoY [2]