CSICPCL(SH:600482) SINOLINK SECURITIES·2024-09-01 03:40Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company achieved significant profit growth in 1H24, with revenue reaching 24.861 billion yuan, up 16.63% year-on-year, and net profit attributable to shareholders at 475 million yuan, up 65.73% year-on-year [2] - The strong performance is attributed to the excellent results in the marine low-speed diesel engine business, with revenue from the marine business at 10.958 billion yuan, up 31.05% year-on-year [2] - The company is backed by China Shipbuilding Group, enhancing its order certainty, and is expected to improve its order-taking capabilities due to its leading dual-fuel engine technology [2] - The report anticipates continued improvement in profitability driven by rising engine prices and stable steel prices [2] Summary by Sections Performance Analysis - In 2Q24, the company achieved revenue of 13.459 billion yuan, up 10.74% year-on-year, and net profit of 3.87 billion yuan, up 53.09% year-on-year [2] - The company produced 224 marine low-speed diesel engines in 1H24, an increase of 14.87% year-on-year, and signed new contracts for 242 units, up 21.61% year-on-year [2] Market Position and Technology - The company holds a 78% market share in domestic low-speed diesel engines and a 39% share internationally [2] - The successful delivery of the first domestic methanol dual-fuel low-speed engine positions the company as a leader in this technology [2] Financial Forecasts - Revenue projections for 2024-2026 are 52.64 billion yuan, 61.095 billion yuan, and 70.875 billion yuan respectively, with net profits expected to be 1.15 billion yuan, 1.938 billion yuan, and 2.977 billion yuan [2] - The report estimates a price-to-earnings ratio (PE) of 42, 25, and 16 for the years 2024, 2025, and 2026 respectively [2]