DAFENG INDUSTRY(SH:603081) Guotai Junan Securities·2024-09-02 05:58Investment Rating - The report maintains an "Accumulate" rating for the company [4][12] - The target price is set at 13.43 CNY, with the current price at 9.13 CNY [4][5] Core Insights - The company is actively expanding its market presence while innovating its technology and processes to enhance efficiency and competitiveness. A significant increase in orders is expected in the second half of the year due to prior market development efforts [3] - The company's revenue for H1 2024 was 660 million CNY, a decrease of 41.82% year-on-year, with a net profit attributable to shareholders of 48 million CNY, down 60.64% [4] - The decline in performance is attributed to insufficient new construction rates, slower-than-expected delivery progress, and increased expenses for new business development [4] - The company has successfully secured several major projects, including the Xunyi County Theater and Anhui Baixi City, and is focusing on developing international markets, particularly in the Middle East and Southeast Asia [4] - The company is deepening its efforts in planning and IP development, leveraging technological innovations to enhance its competitive edge [4] Financial Summary - For 2024, the EPS estimates have been revised down to 0.39 CNY, 0.45 CNY, and 0.52 CNY for the years 2024, 2025, and 2026 respectively [4] - The company reported a net profit margin of 9.8% in 2022, which is expected to decrease to 5.0% in 2023 and gradually improve to 8.1% by 2026 [10] - The total assets of the company are projected to grow from 7,900 million CNY in 2023 to 9,208 million CNY by 2026 [10]