ZMJ(SH:601717) Haitong Securities·2024-09-01 08:17Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the coal machinery sector continues to thrive, with the automotive parts division accelerating its transition to new energy [6] - The company's revenue and net profit for the first half of 2024 reached 18.94 billion and 2.16 billion yuan, respectively, showing a year-on-year increase of 4% and 28.6% [6] - The coal machinery segment's net profit grew by 26% in the first half of 2024, benefiting from a stable coal industry and increasing orders [6] - The automotive parts segment saw significant improvement in profitability, with a net profit increase of 71.8% year-on-year [6] - The company is making progress in its investment business, with IPO applications for its subsidiaries receiving approval [6] Financial Performance Summary - In the first half of 2024, the company achieved a revenue of 18.94 billion yuan, with a net profit of 2.16 billion yuan, reflecting a 4% increase in revenue and a 28.6% increase in net profit year-on-year [6] - The coal machinery segment generated a revenue of 9.8 billion yuan, with a net profit of 2.16 billion yuan, marking a 4.4% and 26.4% increase year-on-year, respectively [6] - The automotive parts segment reported a revenue of 9.15 billion yuan, with a net profit of 180 million yuan, showing a 3.6% increase in revenue and a 71.8% increase in net profit year-on-year [6] Earnings Forecast and Valuation - The company is expected to achieve net profits of 3.73 billion, 4.31 billion, and 4.94 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 2.09, 2.41, and 2.76 yuan [7] - The report assigns a PE ratio of 9 to 10 for 2024, leading to a reasonable value range of 18.81 to 20.9 yuan per share [7] Business Segment Analysis - The hydraulic supports and other coal machinery equipment segment is projected to generate revenues of 14.88 billion, 16.25 billion, 17.72 billion, and 19.21 billion yuan from 2024 to 2026, with a year-on-year growth rate of 22.15% in 2023 [9] - The automotive parts segment is expected to generate revenues of 17.57 billion, 19.15 billion, 20.55 billion, and 21.78 billion yuan from 2024 to 2026, with a year-on-year growth rate of 14.94% in 2023 [9]