GONGNIU(SH:603195) Zhongyuan Securities·2024-09-03 09:32Investment Rating - The report upgrades the investment rating of the company to "Buy" [7] Core Views - The company has demonstrated steady operational performance, with significant growth in its new energy and overseas businesses [2][4] - The company is positioned as a leader in the civil electrical industry, expanding its three main business segments: electrical connections, smart electrical lighting, and new energy [7] - The company is actively pursuing international market expansion, achieving substantial revenue growth from overseas operations [5] Financial Performance Summary - In the first half of 2024, the company achieved operating revenue of 8.386 billion yuan, a year-on-year increase of 10.45%, and a net profit attributable to shareholders of 2.239 billion yuan, up 22.88% year-on-year [2][7] - The gross profit margin for the first half of 2024 was 42.94%, reflecting a year-on-year increase of 2.42 percentage points [6][7] - The company’s net profit margin was 26.68%, an increase of 2.70 percentage points year-on-year [6] Business Segment Performance - The electrical connection products segment saw revenue of 3.870 billion yuan, a year-on-year increase of 5.23% [2] - The new energy business achieved revenue of 289 million yuan, a remarkable year-on-year growth of 120.22% [4] - The smart electrical lighting segment reported revenue of 4.211 billion yuan, with a year-on-year growth of 11.69% [3] Market Expansion and Strategy - The company has expanded its overseas revenue to 140 million yuan, a year-on-year increase of 71.60%, focusing on emerging markets and developed countries [5] - The company is enhancing its management capabilities and cost reduction measures, which have positively impacted its profitability [6][7] - The company aims to build a comprehensive ecosystem centered around smart lighting products, continuously innovating to meet consumer demands [3]