Tianfeng Securities·2024-09-01 12:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance over the next six months [4][6]. Core Views - The company is accelerating its diversified transformation and upgrading, focusing on new business lines that are expected to drive growth momentum [1]. - Despite a decline in traditional business revenues, the mining resources segment remains stable and is anticipated to contribute positively to overall performance [2]. - The company is expected to see steady improvements in growth quality, with projections for net profit from 2024 to 2026 being 35.4 billion, 37.1 billion, and 38.9 billion yuan respectively [4]. Financial Performance Summary - In H1 2024, the company reported revenue of 543.285 billion yuan, a year-on-year decrease of 7.84%, and a net profit of 14.278 billion yuan, down 12.08% [1]. - The revenue breakdown for traditional businesses in H1 2024 shows infrastructure construction at 473.048 billion yuan (-6.76%), design consulting at 8.965 billion yuan (-4.11%), equipment manufacturing at 12.024 billion yuan (-9.68%), and real estate development at 14.481 billion yuan (-30.78%) [2]. - The gross profit margin for H1 2024 was 8.8%, a slight decrease of 0.01 percentage points year-on-year, with net profit margin at 2.88%, down 0.21 percentage points [3]. - The company’s cash flow from operations was negative at -69.332 billion yuan, reflecting an increase in cash outflow by 39.365 billion yuan year-on-year [3]. Business Segment Analysis - New contracts signed in emerging businesses reached 166.33 billion yuan in H1 2024, representing a year-on-year increase of 32.1%, indicating a strong push towards diversification [1]. - The mining resources segment showed stable performance, with production figures for key minerals such as copper at 150,200 tons (+1.3%) and cobalt at 2,800 tons (+13.5%), while other minerals like lead and zinc saw significant declines [2]. Future Projections - The company is projected to achieve revenues of 1,347.179 billion yuan in 2024, with a growth rate of 6.62%, and is expected to maintain a steady growth trajectory through 2026 [5][10]. - The earnings per share (EPS) is forecasted to increase from 1.35 yuan in 2023 to 1.57 yuan in 2026, reflecting a gradual improvement in profitability [5][10].