GONGNIU(SH:603195) ZHESHANG SECURITIES·2024-09-01 05:23Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has demonstrated stable performance in its core business segments, with profitability showing a steady upward trend [2][3] - The company achieved a revenue of 8.386 billion yuan in H1 2024, representing a year-on-year increase of 10.5%, and a net profit attributable to shareholders of 2.239 billion yuan, up 22.9% year-on-year [2] - The growth in net profit is primarily attributed to investment income, with bank wealth management income increasing by 329.6% year-on-year [2] Summary by Relevant Sections Business Performance - The electrical connection segment generated revenue of 3.870 billion yuan in H1 2024, up 5.2% year-on-year, with a focus on innovative products catering to diverse market needs [3] - The smart electrical lighting business achieved revenue of 4.211 billion yuan, a year-on-year increase of 11.69%, driven by a dual focus on cost-effective and mid-to-high-end products [3] - The new energy segment reported revenue of 289 million yuan, a significant increase of 120.22% year-on-year, with ongoing development of product lines and strategic partnerships [3] Profitability Metrics - The gross margin for H1 2024 was 42.94%, an increase of 2.40 percentage points year-on-year, with Q2 2024 gross margin at 43.59% [4] - The net profit margin for H1 2024 was 26.70%, up 2.7 percentage points year-on-year, with Q2 2024 net profit margin at 28.57% [4] - The company has increased its marketing and promotional expenditures, with sales expenses rising by 27.2% year-on-year [9] Financial Forecast - The company is projected to achieve revenues of 17.229 billion yuan, 19.097 billion yuan, and 21.263 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 9.77%, 10.84%, and 11.35% [10] - Net profit attributable to shareholders is expected to reach 4.387 billion yuan, 4.965 billion yuan, and 5.635 billion yuan for the same years, with growth rates of 13.36%, 13.17%, and 13.49% respectively [10]