太极股份：项目延迟+投入加大，收入利润承压

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 19.31, down from a previous target of RMB 36.37 [1][6]. Core Views - The company's revenue and profit are under short-term pressure due to project delays and increased investment, but there is potential for performance improvement with future demand recovery [1][2]. - The company reported a revenue of RMB 2.614 billion for H1 2024, a year-over-year decrease of 18.34%, and a net loss attributable to shareholders of RMB 159 million [1][2]. - The company is focusing on strategic transformation and increasing investment in core products, which has led to temporary losses [2][4]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of RMB 2.614 billion, down 18.34% year-over-year, with a net loss of RMB 159 million compared to a profit of RMB 50.76 million in the same period last year [1][2]. - Q2 2024 revenue was RMB 0.952 billion, reflecting a 29.77% year-over-year decline and a 42.69% quarter-over-quarter decline [1]. Business Segments - The industry solutions segment generated RMB 1.118 billion in revenue, down 15.76% year-over-year, with a gross margin of 19.39% [2]. - The digital infrastructure segment reported revenue of RMB 0.554 billion, down 29.93%, but with a gross margin increase to 12.93% [2]. - The self-developed software products segment had revenue of RMB 0.485 billion, down 7.43%, with a gross margin of 32.78% [2]. - The cloud and data services segment generated RMB 0.401 billion, down 16.41%, with a gross margin of 56.77% [2]. Subsidiary Performance - The subsidiary, Renmin University of China JinKang, achieved revenue of RMB 90.57 million in H1 2024, a year-over-year increase of 19.40% [3]. - The company increased its stake in Renmin University of China JinKang to 54.62%, enhancing control over the subsidiary [3]. Cost Management - The company reported sales, management, and R&D expense ratios of 5.85%, 23.93%, and 3.05%, respectively, with management expenses slightly decreasing [4]. - Operating cash flow for H1 2024 was negative RMB 1.845 billion, a year-over-year decline of RMB 693 million [4]. Valuation Metrics - The estimated EPS for 2024, 2025, and 2026 are RMB 0.68, RMB 1.01, and RMB 1.46, respectively [1][5]. - The company’s market capitalization is projected at RMB 12.032 billion, with a target price of RMB 19.31 based on a valuation method [1][5].