SIFANG(601126) 民生证券·2024-09-02 08:30Investment Rating - The report maintains a "Recommend" rating for the company [2][4] Core Views - The company's H1 2024 performance met expectations, with revenue reaching 3.477 billion yuan, a YoY increase of 21.18%, and net profit attributable to the parent company of 424 million yuan, a YoY increase of 19.24% [1] - The company's secondary equipment products have steadily increased their market share across various application fields, including smart grid, smart power generation, and smart power consumption [2] - The company is expected to benefit from the construction of new power systems, with both domestic and international businesses experiencing rapid growth [2] Financial Performance - In H1 2024, the company's gross margin was 33.46%, a YoY decrease of 2.64 percentage points, while the net margin was 12.22%, a YoY decrease of 0.19 percentage points [1] - The company's R&D investment in H1 2024 was 320 million yuan, a YoY increase of 25%, focusing on key areas such as distributed energy, flexible transmission, and new power system relay protection [2] - The company's revenue is expected to grow to 7.035 billion yuan in 2024, 8.467 billion yuan in 2025, and 10.211 billion yuan in 2026, with corresponding net profit growth rates of 19.9%, 19.2%, and 19.0% respectively [2][3] Business Segments - The grid automation business generated revenue of 1.689 billion yuan in H1 2024, a YoY increase of 11.58%, while the power plant and industrial automation business generated revenue of 1.526 billion yuan, a YoY increase of 24.89% [1] - Domestic revenue accounted for 3.353 billion yuan, a YoY increase of 20.62%, while international revenue was 117 million yuan, a YoY increase of 40.85% [1] Valuation and Forecast - The company's PE ratio is expected to be 18x in 2024, 15x in 2025, and 13x in 2026, based on the closing price on August 30, 2024 [2][3] - The company's EPS is forecasted to be 0.90 yuan in 2024, 1.08 yuan in 2025, and 1.28 yuan in 2026 [3][5]