国茂股份：公司简评报告：需求有待企稳，经营性回款改善

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The company's revenue for H1 2024 was 1.27 billion, a year-on-year decrease of 5.3%, while the net profit attributable to shareholders was 150 million, down 14.6% year-on-year. In Q2 2024, revenue was 680 million, a decline of 4.2% year-on-year, with net profit at 80 million, down 10.3% year-on-year, indicating a narrowing decline compared to Q1 [7] - Despite pressure on demand leading to price competition in the industry, the company maintained a market share advantage in core products, with a 4.2% year-on-year increase in the sales volume of gear reducers (excluding Moduli products) in H1 2024. The company is focusing on domestic substitution in various sectors and expanding into Southeast Asia and Belt and Road markets [7][8] - The company is enhancing cost control and efficiency, achieving a gross margin of 23.5% in H1 2024, down 2.9 percentage points year-on-year. The sales net profit margin was 11.5%, with a slight decline compared to the previous year. The company is implementing digital upgrades and lean management to improve operational efficiency [7] - Operating cash flow improved significantly, with a net cash flow from operating activities increasing by 71.9% year-on-year, primarily due to improved collection rates. The company's debt ratio was 28.5% as of mid-2024, with cash and financial assets accounting for 33.6% of total assets [7] Summary by Sections Financial Performance - H1 2024 revenue was 1.27 billion, down 5.3% year-on-year; net profit was 150 million, down 14.6% year-on-year [7] - Q2 2024 revenue was 680 million, down 4.2% year-on-year; net profit was 80 million, down 10.3% year-on-year [7] Market Position and Strategy - The company maintained a competitive edge in core products despite industry challenges, with a 4.2% increase in gear reducer sales [7] - Focus on domestic substitution and expansion into Southeast Asia and Belt and Road markets [7][8] Cost Management and Efficiency - Gross margin for H1 2024 was 23.5%, down 2.9 percentage points year-on-year; sales net profit margin was 11.5% [7] - Implementation of digital upgrades and lean management to enhance operational efficiency [7] Cash Flow and Financial Health - Operating cash flow net amount increased by 71.9% year-on-year; debt ratio was 28.5% [7]