China XD(601179) 国联证券·2024-09-04 01:38Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company reported a revenue of 10.342 billion yuan for H1 2024, representing a year-on-year increase of 7.42%. The net profit attributable to shareholders was 0.452 billion yuan, up 5.23% year-on-year. In Q2 2024, revenue reached 5.631 billion yuan, showing a year-on-year growth of 17.95% and a quarter-on-quarter increase of 19.51%. The net profit for Q2 was 0.249 billion yuan, up 3.63% year-on-year and 22.55% quarter-on-quarter, indicating that performance met expectations [2][6] - The company's product profitability continues to improve, and internal management is being optimized. The company is increasing its market expansion efforts, resulting in a significant increase in orders. The optimization of personnel structure is also underway, with an increase in the number of internal retirements, suggesting promising future growth [6][7] Financial Performance - For H1 2024, the main equipment revenue showed growth, with transformers, switches, capacitors, insulators, and lightning arresters generating revenues of 4.468 billion, 4.081 billion, 0.433 billion, respectively, with year-on-year increases of 21.64%, 25.07%, and 25.87%. The overall gross margin was 18.93%, up 2.42 percentage points year-on-year [6][7] - The company maintains a leading position in the ultra-high voltage market, with a cumulative bid amount of 1.203 billion yuan in the State Grid's four batches of bidding in August 2024, ranking first and accounting for 9.92% of the total amount [6][7] - The company has made breakthroughs in international business, winning bids for projects in Turkey, Italy, Sweden, Ireland, Jordan, Ghana, and Zimbabwe, among others [6][7] Revenue and Profit Forecast - The company is expected to achieve revenues of 22.821 billion, 25.873 billion, and 29.287 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 9.47%, 13.37%, and 13.19%. The net profit attributable to shareholders is projected to be 1.170 billion, 1.406 billion, and 1.845 billion yuan for the same years, with growth rates of 32.17%, 20.17%, and 31.22% respectively. The EPS is expected to be 0.23, 0.27, and 0.36 yuan per share, with a three-year CAGR of 27.82% [6][7]