SANXING(SH:601567) Guotai Junan Securities·2024-09-09 05:38Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's performance in the first half of 2024 exceeded market expectations, driven by rapid growth in smart power distribution orders and accelerated development in overseas distribution business [3][4]. - The earnings per share (EPS) forecasts for 2024 and 2025 have been raised to 1.71 and 2.10 CNY respectively, with a target price set at 44.55 CNY based on a price-to-earnings (PE) ratio of 21.21x for 2025 [4][6]. Financial Performance Summary - In H1 2024, the company achieved revenue of 6.997 billion CNY, a year-on-year increase of 26.11%, and a net profit attributable to shareholders of 1.150 billion CNY, up 32.23% year-on-year [4][5]. - The second quarter of 2024 saw revenue of 3.972 billion CNY, a 20.37% increase year-on-year and a 31.34% increase quarter-on-quarter [4]. - The company’s smart power distribution business generated revenue of 5.316 billion CNY in H1 2024, reflecting a 27.2% year-on-year growth, with net profit reaching 0.971 billion CNY, up 29.37% year-on-year [4]. Business Segment Performance - The smart power distribution business has a backlog of orders amounting to 14.894 billion CNY, a 25.74% increase year-on-year, with significant growth in overseas markets [4]. - The medical services segment reported revenue of 1.613 billion CNY in H1 2024, a 26.53% increase year-on-year, with a focus on rehabilitation services [4]. Financial Projections - The company’s projected revenues for 2024, 2025, and 2026 are 14.373 billion CNY, 17.634 billion CNY, and 20.887 billion CNY respectively, with corresponding net profits of 2.411 billion CNY, 2.964 billion CNY, and 3.569 billion CNY [5][12]. - The net asset return (ROE) is expected to improve from 17.3% in 2023 to 22.8% in 2026 [5][12].