China XD(SH:601179) Guohai Securities·2024-09-02 17:36Investment Rating - The report maintains an "Accumulate" rating for China Xidian (601179) [1][6][8] Core Views - China Xidian's revenue for H1 2024 reached 10.3 billion yuan, a year-on-year increase of 7%, with net profit attributable to shareholders at 450 million yuan, up 5% year-on-year [3][4] - The company is expected to benefit from the high demand for ultra-high voltage (UHV) construction, with the domestic UHV sector entering a new approval peak due to the construction and operation of large wind and solar bases [5][6] - The company has strong technical capabilities in UHV technology and a solid customer base, positioning it well for future growth [5][6] Financial Performance Summary - In H1 2024, the switchgear business generated revenue of 4.08 billion yuan, up 25% year-on-year, while the transformer business achieved revenue of 4.47 billion yuan, a 22% increase year-on-year [4] - The sales gross margin for H1 2024 was 18.9%, an increase of 2.4 percentage points year-on-year, and the net profit margin was 5.5%, up 0.3 percentage points year-on-year [3][4] - For Q2 2024, revenue was 5.63 billion yuan, a quarter-on-quarter increase of 20% and an 18% year-on-year increase [3][4] Earnings Forecast - The company is projected to achieve revenues of 23.2 billion yuan, 26.6 billion yuan, and 29.8 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 10%, 14%, and 12% [6][8] - Net profit attributable to shareholders is expected to be 1.28 billion yuan, 1.82 billion yuan, and 2.31 billion yuan for the same years, with growth rates of 44%, 43%, and 27% [6][8] - The report anticipates an EPS of 0.25 yuan, 0.36 yuan, and 0.45 yuan for 2024, 2025, and 2026, respectively [6][8]