NEWAY(SH:603699) Southwest Securities·2024-09-04 05:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [1]. Core Insights - The company reported a revenue of 2.84 billion yuan for the first half of 2024, representing a year-on-year increase of 17.1%, and a net profit attributable to shareholders of 490 million yuan, up 45.0% year-on-year [1]. - The business structure has been optimized, leading to significant improvements in profitability, with a gross margin of 35.5% and a net margin of 17.4% in the first half of 2024 [1]. - The company has successfully expanded its customer base and product offerings, enhancing its competitive position in the industrial valve market [2]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 1.48 billion yuan, a year-on-year increase of 11.1% and a quarter-on-quarter increase of 8.7%, with a net profit of 290 million yuan, up 22.2% year-on-year and 48.0% quarter-on-quarter [1]. - The comprehensive gross margin for H1 2024 was 35.5%, an increase of 5.8 percentage points year-on-year, while the net margin was 17.4%, up 3.3 percentage points year-on-year [1]. Business Development - The company has a diverse product range, including various types of valves and has achieved full coverage of API6D certification for key products [2]. - It has established deep collaborations with major players in the oil and gas sector, such as SHELL and TOTAL, and is expanding into clean energy projects [2]. Profit Forecast and Valuation - The company is projected to achieve net profits of 900 million yuan, 1.04 billion yuan, and 1.18 billion yuan for 2024, 2025, and 2026, respectively, with a compound annual growth rate of 18% [2]. - The current stock price corresponds to a price-to-earnings ratio of 16, 14, and 12 for the next three years [2].