DEC(600875) Great Wall Securities·2024-09-04 08:46Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [13]. Core Views - The company's revenue for the first half of 2024 reached 33.457 billion yuan, a year-on-year increase of 11.84%, while the net profit attributable to shareholders decreased by 15.52% due to various short-term impacts [1]. - The company is experiencing a significant increase in new orders, particularly in the coal power sector, which is expected to support future revenue growth despite current margin pressures [2][6]. - The company is focusing on innovation through increased R&D investment, with a commitment to maintain R&D expenditure at no less than 5% of revenue, emphasizing green and digital transformation [2][6]. Financial Summary - Revenue growth is projected at 12.7% for 2024, 12.3% for 2025, and 9.6% for 2026, with net profit growth expected at 13.0%, 21.6%, and 14.4% respectively [6]. - The company's earnings per share (EPS) are forecasted to be 1.29 yuan in 2024, 1.56 yuan in 2025, and 1.79 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 10, 9, and 8 [6][9]. - The coal power segment's revenue for the first half of 2024 was 8.522 billion yuan, with a gross margin of 16.4%, reflecting a decrease of 2.6 percentage points year-on-year [2]. Order Growth and Market Outlook - The company reported a 28% year-on-year increase in new effective orders in the coal power sector for the first half of 2024, with a further increase of over 37% in July [2]. - The clean and efficient energy segment saw a revenue increase of 41% in the first half of 2024, with nuclear power growing by 60.5% and gas turbine growth reaching 154.2% [2]. - The company achieved a record high in new orders for its power station service segment, amounting to 4.69 billion yuan, a year-on-year increase of over 54% [2].