CH ENERGY ENG(601868) 天风证券·2024-09-01 10:32Investment Rating - The investment rating for the company is "Buy" with a target price set at 2.13 CNY, maintaining the rating for the next six months [2][3]. Core Views - The company's Q2 performance is under short-term pressure, but there is optimism regarding the uptrend in the electric grid, hydropower, and nuclear power sectors, which supports the "Buy" rating [3][6]. - The company achieved a revenue of 194.26 billion CNY in H1 2024, a year-on-year increase of 1.1%, with a net profit attributable to the parent company of 2.78 billion CNY, up 4.7% year-on-year [3]. - The company is accelerating its investment in renewable energy, with a significant increase in installed capacity, particularly in new energy, which is expected to drive future growth [4][6]. Financial Data Summary - Revenue projections for the company are as follows: 406.03 billion CNY in 2023, 438.53 billion CNY in 2024E, 474.55 billion CNY in 2025E, and 520.05 billion CNY in 2026E, with growth rates of 10.82%, 8.00%, 8.22%, and 9.59% respectively [2][9]. - The net profit attributable to the parent company is projected to be 7.99 billion CNY in 2023, 8.69 billion CNY in 2024E, 9.49 billion CNY in 2025E, and 10.48 billion CNY in 2026E, with growth rates of 2.26%, 8.86%, 9.11%, and 10.52% respectively [2][9]. - The company's EBITDA for 2023 is estimated at 41.26 billion CNY, with projections of 33.70 billion CNY in 2024E, 37.66 billion CNY in 2025E, and 41.81 billion CNY in 2026E [2][9]. Business Segment Performance - In H1 2024, the revenue from various business segments was as follows: surveying and consulting at 7.81 billion CNY (up 22.7%), engineering construction at 164.98 billion CNY (up 2.9%), industrial manufacturing at 1.46 billion CNY (down 5.3%), and investment operations at 13.14 billion CNY (down 11.2%) [4]. - The investment operations in renewable energy and integrated smart energy saw a revenue increase of 48.4% to 2.39 billion CNY, while real estate investment operations declined by 45.4% to 3.82 billion CNY [4]. Profitability and Margins - The overall gross margin improved to 12.19%, an increase of 1.26 percentage points year-on-year, with specific margins for different segments: surveying and consulting at 36.56%, engineering construction at 7.34%, industrial manufacturing at 17.23%, and investment operations at 43.44% [5]. - The net profit margin for H1 2024 was reported at 2.34%, a slight decrease of 0.02 percentage points year-on-year [5]. Market Outlook - The company is well-positioned to benefit from the high demand in the electric grid, hydropower, and nuclear power sectors, with significant contracts signed in traditional energy projects [6]. - The new contracts signed in H1 2024 amounted to 738.6 billion CNY, a year-on-year increase of 14.4%, indicating strong growth potential in the coming years [6].