Smarter Energy(600869) 太平洋·2024-09-09 03:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [5][6]. Core Views - The company reported a steady revenue growth with a total revenue of 11.344 billion yuan in H1 2024, representing a year-on-year increase of 9.41% [1]. - The net profit attributable to shareholders was -1.30 billion yuan, a significant decline of 140.66% year-on-year, while the net profit excluding non-recurring items was -1.35 billion yuan, down 147.07% year-on-year [1]. - The company’s smart cable network business achieved revenue of 10.287 billion yuan in H1 2024, up 5.98% year-on-year, but net profit decreased by 72.78% to 0.155 billion yuan due to rising raw material prices [1]. - The company is nearing the completion of its submarine cable factory, which is expected to enhance growth opportunities in the smart cable network business [1]. Financial Summary - For H1 2024, the company’s comprehensive gross margin was 9.86%, down 4.00 percentage points year-on-year, with Q2 gross margin at 9.13% [1]. - The company’s revenue projections for 2024-2026 are 27.460 billion yuan, 30.782 billion yuan, and 34.407 billion yuan, respectively, with expected growth rates of 12.24%, 12.09%, and 11.78% [3]. - The net profit forecasts for the same period are 0.451 billion yuan, 0.721 billion yuan, and 0.837 billion yuan, with growth rates of 41.09%, 59.89%, and 16.06% respectively [3].