ZMJ(SH:601717) Huaxin Securities·2024-09-01 08:47Investment Rating - The report assigns a "Buy" rating for Zheng Coal Machine (601717.SH) [2] Core Views - The coal industry is experiencing a high level of capital expenditure, leading to increased demand for coal machinery equipment. In the first seven months of 2024, fixed asset investment in coal mining and washing industries grew by 10.5% year-on-year, indicating a sustained upward cycle in the coal industry [2][3] - The automotive parts business is accelerating, with market share expected to increase. In the first half of 2024, China's automobile production and sales reached 13.89 million and 14.04 million units, respectively, with year-on-year growth of 4.9% and 6.1%. The new energy vehicle sector saw production and sales of 4.93 million units, reflecting a year-on-year increase of 30.1% and 32% [2][3] - The company's performance has improved significantly, with a 4.01% year-on-year increase in revenue and a 28.56% increase in net profit attributable to shareholders in the first half of 2024 [2][3] Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 18.953 billion yuan, a year-on-year increase of 4.01%. The net profit attributable to shareholders was 2.162 billion yuan, up 28.56% year-on-year, with a net profit excluding non-recurring gains and losses of 1.937 billion yuan, reflecting a 29.25% increase [2][3] - The coal machinery segment accounted for 50% of revenue in H1 2024, with a year-on-year revenue growth of 4.41% and a net profit growth of 27.61% [3] - The automotive parts segment represented 48% of revenue, with a year-on-year revenue increase of 3.58% and a net profit growth of 54.05%, driven by the rapid growth of new energy vehicle business [3] Earnings Forecast - The company is projected to achieve revenues of 39.989 billion, 44.393 billion, and 48.832 billion yuan for 2024, 2025, and 2026, respectively. The earnings per share (EPS) are expected to be 2.15, 2.43, and 2.77 yuan, with corresponding price-to-earnings (PE) ratios of 6, 5, and 4 times [4]