GONGNIU(SH:603195) Tai Ping Yang·2024-09-02 09:30Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [3][7]. Core Views - The company has shown strong profit growth in Q2 2024, with significant performance in its new energy business. The revenue for H1 2024 reached 8.386 billion yuan, a 10.45% increase year-on-year, while the net profit attributable to shareholders was 2.239 billion yuan, up 22.88% [2][3]. - The report highlights the company's focus on innovation and development in three main business areas: electrical connections, smart electrical lighting, and new energy. The company is leveraging both online and offline channels to strengthen its market position [3][5]. - The projected net profits for the company from 2024 to 2026 are 4.480 billion yuan, 4.955 billion yuan, and 5.563 billion yuan, respectively, with corresponding EPS of 3.47 yuan, 3.83 yuan, and 4.30 yuan [3][4]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 4.583 billion yuan, a 7.64% increase, and a net profit of 1.309 billion yuan, reflecting a 20.58% growth [2][3]. - The company's gross margin in Q2 2024 was 43.59%, an increase of 0.44 percentage points year-on-year, while the net margin reached 28.52%, up 3.05 percentage points [2][3]. Business Segments - For H1 2024, the revenue from electrical connections, smart electrical lighting, and new energy businesses were 3.870 billion yuan (up 5.23%), 4.211 billion yuan (up 11.69%), and 289 million yuan (up 120.22%), respectively [2][3]. - The new energy business has shown remarkable growth, supported by the company's technological and brand advantages [2][3]. Market Strategy - The company has established over 750,000 hardware channel points and over 22,000 terminal points for its new energy business, indicating a robust distribution network [3][5]. - The company is actively engaging in e-commerce platforms and has maintained a leading market share in online sales for its converter and wall switch socket categories [3][5].