Changgao NEET(SZ:002452) Guohai Securities·2024-09-02 17:06Investment Rating - The report maintains a "Buy" rating for the company Changgao Electric (002452) [2][4][6] Core Views - The company's performance is stable, with significant growth in high-voltage products expected to drive future revenue [2][3] - In H1 2024, the company achieved revenue of 730 million yuan, a year-on-year increase of 12%, and a net profit of 120 million yuan, up 43% year-on-year [3][4] - The company is positioned to benefit from increased investment in the power grid, with expectations for annual grid investment to exceed 600 billion yuan [3][4] Financial Performance Summary - In H1 2024, the company's revenue from power transmission and transformation business showed steady growth, with significant improvements in profitability [3] - The revenue from subsidiaries in the power transmission and transformation equipment sector was as follows: Changgao Switch (180 million yuan, +7% YoY), Changgao Electric (370 million yuan, +18% YoY), Changgao Complete (80 million yuan, +14% YoY), and Changgao Senyuan (110 million yuan, +0.3% YoY) [3] - The company’s gross profit margin increased to 36.4%, up 3.6 percentage points year-on-year, while the net profit margin rose to 16.6%, up 3.7 percentage points year-on-year [3] Earnings Forecast - The company is expected to achieve revenues of 1.8 billion yuan, 2.3 billion yuan, and 2.7 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 21%, 26%, and 19% [4][6] - The net profit forecast for the same period is 300 million yuan, 390 million yuan, and 480 million yuan, with growth rates of 71%, 31%, and 23% [6][7] - The report indicates that the company's earnings per share (EPS) will be 0.48 yuan, 0.63 yuan, and 0.77 yuan for 2024, 2025, and 2026, respectively [6][7]