GUOMAO REDUCER(603915) 西南证券·2024-08-31 11:00Investment Rating - The report maintains a "Buy" rating for Guomao Co., Ltd. (603915) [1] Core Views - The company's performance is under pressure, with a year-on-year revenue decline of 5.29% to 1.268 billion yuan in H1 2024, and a net profit decline of 14.64% to 146 million yuan [1] - The demand in the reducer industry is weak, leading to competitive pressures, but there are growth opportunities in sectors like rubber and plastic machinery, marine engineering, and non-standard automation [1] - The company is focusing on structural opportunities in niche mechanical fields such as injection molding machines and elevator traction machines [1] - There is a quarter-on-quarter improvement in gross margin and net margin, with H1 2024 gross margin at 23.53% and net margin at 11.55% [1] Financial Summary - For H1 2024, the company reported revenue of 1.268 billion yuan, down 5.29% year-on-year, and a net profit of 146 million yuan, down 14.64% year-on-year [1] - Q2 2024 revenue was 683 million yuan, a 4.25% year-on-year decline but a 16.67% quarter-on-quarter increase, with net profit at 82 million yuan, down 10.26% year-on-year but up 26.32% quarter-on-quarter [1] - The company forecasts net profits of 450 million yuan, 508 million yuan, and 568 million yuan for 2024, 2025, and 2026 respectively, indicating a compound annual growth rate of 13% [1][2]