NEWLAND(000997) 海通证券·2024-08-31 08:38Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company's profitability has improved, and its overseas expansion is accelerating [4] - The payment business model and merchant quality upgrades have further enhanced profitability [4] - The company's smart terminal global deployment has made breakthrough progress, with overseas revenue accounting for 75% of the total [5] - Emerging businesses, including digital RMB and AI, continue to contribute to the company's performance growth [7] Financial Performance - In H1 2024, the company achieved revenue of 3.636 billion yuan, a year-on-year decrease of 5.25%, and net profit attributable to the parent company of 530 million yuan, a year-on-year decrease of 6.15% [4] - Excluding the impact of investment income and minority equity factors, the company's net profit attributable to the parent company in H1 2024 increased by 21.36% year-on-year to 648 million yuan [4] - The gross profit margin of the merchant operation and value-added service business reached 45.25%, an increase of 4.17 percentage points year-on-year [4] - The gross profit margin of the smart terminal business increased by 2.59 percentage points to 40.90% [5] Business Highlights - The company's payment service transaction scale in H1 2024 was 1.07 trillion yuan, a year-on-year decrease of 17.69%, but the proportion of QR code transactions increased significantly [4] - The company has made significant progress in the bank joint acquiring model, with nearly 40 new projects won and transaction volume exceeding 360 billion yuan in H1 2024 [4] - In the digital RMB sector, the company has partnered with major banks and served nearly 15,000 acquiring merchants by the end of June [7] - The company has successfully bid for several AI-related projects, including China Tower's AI algorithm model research and Xinjiang Unicom's AI recognition cloud-edge collaborative intelligent inspection [7] Financial Forecast - The company's revenue is expected to be 8.273 billion yuan, 9.103 billion yuan, and 10.038 billion yuan in 2024, 2025, and 2026, respectively, with year-on-year growth rates of 0.3%, 10.0%, and 10.3% [7] - Net profit attributable to the parent company is expected to be 1.175 billion yuan, 1.432 billion yuan, and 1.687 billion yuan in 2024, 2025, and 2026, respectively, with year-on-year growth rates of 17.0%, 21.9%, and 17.8% [7] - The company's EPS is expected to be 1.14 yuan, 1.39 yuan, and 1.63 yuan in 2024, 2025, and 2026, respectively [7] Valuation - The report gives the company a 2024 dynamic PE of 15-18 times, with a reasonable value range of 17.10-20.52 yuan [7] - The company's current market value is 13.293 billion yuan, with a total share capital of 1.032 billion shares and a circulating A-share capital of 1.026 billion shares [1]