China XD(SH:601179) Huajin Securities·2024-09-03 15:00Investment Rating - The report maintains a rating of "Accumulate" for the company, with a target price of 7.18 CNY per share [1]. Core Views - The company's H1 2024 performance met expectations, with operating revenue of 10.284 billion CNY, a year-on-year increase of 8.24%, and a net profit attributable to shareholders of 0.452 billion CNY, up 5.23% year-on-year [1]. - The company leads in the bidding share for power transmission and transformation equipment, with significant growth in major product revenues [1]. - The report highlights the ongoing investment in the power grid, which is expected to exceed 600 billion CNY in 2024, marking a year-on-year increase of over 10% [1]. - The company is actively expanding into emerging sectors such as new energy, integrated energy, and hydrogen energy, which are anticipated to become new growth points [2]. Financial Performance - For H1 2024, the company achieved total revenue of 5.631 billion CNY in Q2, representing a year-on-year increase of 17.95% and a quarter-on-quarter increase of 19.51% [1]. - The company’s net profit for Q2 2024 was 0.249 billion CNY, reflecting a year-on-year increase of 3.63% and a quarter-on-quarter increase of 22.55% [1]. - The report forecasts net profits for 2024, 2025, and 2026 to be 1.163 billion CNY, 1.464 billion CNY, and 1.904 billion CNY respectively, with corresponding EPS of 0.23, 0.29, and 0.37 CNY [2]. Market Position and Strategy - The company maintains a leading position in the high-voltage equipment market, with a strong market share in both domestic and international markets [1]. - The report notes the successful bidding for key international projects, including the Akkuyu Nuclear Power Plant in Turkey and various projects in countries along the Belt and Road Initiative [1][2]. - The company is increasing its R&D investment, with R&D expenses reaching 370 million CNY in H1 2024, a year-on-year increase of 28.66% [1].