XJEC(000400) 中国银河·2024-09-02 09:45Investment Rating - The report maintains a "Recommended" rating for XJ Electric (stock code: 000400.SZ) [3] Core Views - The company's revenue for H1 2024 is 6.836 billion, a year-on-year decrease of 5.10%, while the net profit attributable to shareholders is 628 million, an increase of 10.35% year-on-year [1] - The company benefits from increased investment in the power grid, with steady growth in its main business segments [1] - The report forecasts revenue of 19.909 billion and 23.238 billion for 2024 and 2025 respectively, with net profits of 1.226 billion and 1.628 billion [2][6] Summary by Sections Financial Performance - In H1 2024, the revenue from smart distribution and transformation equipment is 2.123 billion, accounting for 31.05% of total revenue, with a gross margin of 23.12% [1] - The revenue from smart meters is 1.599 billion, representing 23.40% of total revenue, with a gross margin of 27.56% [1] - The revenue from new energy and system integration is 999 million, a year-on-year decrease of 29.74%, with a gross margin of 6.50% [1] - The company reported a significant improvement in profitability in Q2 2024, with a net profit margin of 9.7% [2] Market Position and Growth Drivers - The company has strengthened its marketing efforts, achieving significant wins in both domestic and international markets [1] - The report highlights the company's strong position in high-voltage and smart grid-related businesses, anticipating continued high growth as industry conditions improve [2] Future Projections - The report projects a revenue growth rate of 16.70% for 2024 and 16.72% for 2025, with an expected EPS of 1.20 yuan and 1.60 yuan respectively [6] - The company is expected to benefit from ongoing investments in the power grid, with a projected net profit growth rate of 21.94% in 2024 [6]