ZHEFU(002266) 国联证券·2024-09-04 14:00Investment Rating - The investment rating for the company is "Accumulate (First Time)" [4] Core Insights - The company reported a stable revenue growth with a 10.23% year-on-year increase in revenue for the first half of 2024, reaching 10.31 billion yuan. However, the net profit attributable to shareholders decreased by 35.2% to 485 million yuan [2][5] - The company is a key supplier of control rod drive mechanisms in the nuclear power sector, benefiting from the high demand in the nuclear industry [5] Financial Performance Summary - In H1 2024, the company achieved revenue of 10.31 billion yuan, a 10.23% increase year-on-year, while the net profit was 485 million yuan, down 35.2% [2][5] - For Q2 2024, revenue was 5.86 billion yuan, reflecting a 24.23% year-on-year growth, with a net profit of 174 million yuan, down 31.52% [2][5] - The revenue from hazardous waste disposal and resource recovery products increased by 9.85%, accounting for 95.32% of total revenue, although the gross margin decreased by 3.32% due to rising upstream resource prices [5] - The company’s clean energy equipment revenue grew by 20.09%, with a slight decrease in gross margin by 0.44% [5] Cost Control and Investment Income - The company maintained good control over its expense ratios, with sales, management, R&D, and financial expense ratios at 0.14%, 2.43%, 4.52%, and 0.45% respectively [5] - Investment income decreased by 298 million yuan year-on-year, primarily due to the disposal of financial liabilities in H1 2023 [5] Industry Outlook and Orders - The nuclear power industry remains robust, with the approval of 11 new nuclear power units, leading to increased orders for equipment manufacturers [5] - The company’s subsidiary, Huadu, is a major manufacturer of control rod drive mechanisms and has secured contracts for several nuclear projects, including those in Fujian and exports to Pakistan, with new orders totaling 103 million yuan in H1 2024 [5] Earnings Forecast and Valuation - Projected revenues for 2024-2026 are 21.33 billion yuan, 23.11 billion yuan, and 24.26 billion yuan, with year-on-year growth rates of 12.57%, 8.34%, and 4.99% respectively [6] - The net profit attributable to shareholders is expected to be 1.07 billion yuan, 1.22 billion yuan, and 1.49 billion yuan for the same period, with growth rates of 4.30%, 14.45%, and 21.90% respectively [6] - The company is valued at a PE ratio of 13.7, 11.9, and 9.8 for the years 2024, 2025, and 2026 respectively, reflecting its position as a leader in hazardous waste treatment and a core supplier in the nuclear equipment sector [5][6]