Runjian (SZ:002929) Tianfeng Securities·2024-09-03 13:30Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Views - The company experienced a revenue decline of 3.70% year-on-year in H1 2024, with a total revenue of 44.24 billion yuan and a net profit of 2.36 billion yuan, down 17.21% [1] - In Q2 2024, the company reported revenue of 22.85 billion yuan, a slight decrease of 0.66% year-on-year, and a net profit of 1.08 billion yuan, down 25.39% [1] - The company is expected to recover growth in the second half of the year due to a rich order backlog and improvements in various business segments [2] Summary by Sections Financial Performance - The company achieved a gross margin of 16.76% in H1 2024, a decrease of 1.87 percentage points year-on-year [2] - The revenue breakdown for Q2 shows communication network business at 20.77 billion yuan (up 0.85% YoY), information network business at 13.41 billion yuan (down 4.08% YoY), energy network business at 7.80 billion yuan (down 19.28% YoY), and computing network business at 2.25 billion yuan (up 32.82% YoY) [2] Business Outlook - The company has secured significant projects in multiple provinces, indicating a stable development in the communication network business [2] - The energy network business has a total installed capacity of over 15GW in wind, solar, and energy storage projects, which is expected to drive rapid growth as revenue recognition progresses [2] - The computing network business is positioned as a leader in intelligent computing cloud services, with ongoing collaborations with major tech firms [2] Profit Forecast and Valuation - The profit forecast for 2024-2026 has been adjusted to 4.6 billion yuan, 5.7 billion yuan, and 7.0 billion yuan respectively, with corresponding valuations of 16x, 12x, and 10x [2][3]