SIPG(600018) 华泰证券·2024-09-03 06:03Investment Rating - Investment Rating: Buy [1] - Target Price: RMB 6.90 [1] Core Insights - The port's main business demand is improving, leading to a significant increase in profitability for the first half of 2024, with a revenue growth of 23.1% to RMB 19.84 billion and a net profit growth of 14.9% to RMB 8.42 billion [2][4] - The company achieved a cargo throughput of 290 million tons, a year-on-year increase of 6.2%, with container throughput ranking first globally at 25.51 million TEUs, up 7.5% [2][3] - Investment income decreased by 8.7% year-on-year to RMB 3.81 billion, impacting overall net profit [5] Financial Performance - Revenue for 1H24 reached RMB 19.84 billion, with a gross profit of RMB 7.80 billion, reflecting a gross margin of 39.3% [4] - The company announced an interim dividend of RMB 0.05 per share, with a payout ratio of 14% [2] - The revenue breakdown shows container, bulk cargo, port logistics, and port services generating RMB 8.06 billion, RMB 0.81 billion, RMB 5.60 billion, and RMB 2.04 billion respectively, with growth rates of 4.6%, 5.9%, 5.0%, and 31.8% [4] Long-term Development - The company is the world's largest container port, maintaining its position since 2010, and is enhancing its role as a key hub in the Yangtze River Economic Belt and the Belt and Road Initiative [3] - The company is focusing on developing multimodal transport to improve logistics services, further solidifying its leading role in the region [3] Earnings Forecast - Net profit forecasts for 2024, 2025, and 2026 have been slightly adjusted upwards by 4%, 3%, and 3% to RMB 15.7 billion, RMB 15.8 billion, and RMB 16.6 billion respectively [2] - The target price adjustment reflects a 10% increase based on a 10.2x PE for 2024E, considering the expected improvement in profitability [2]