Jangho(SH:601886) Changjiang Securities·2024-09-10 07:10Investment Rating - The investment rating for the company is "Buy" and is maintained [3][6]. Core Views - The company achieved a revenue of 9.92 billion yuan in the first half of the year, representing a year-on-year growth of 12.10%. The net profit attributable to shareholders was 322 million yuan, up 10.23% year-on-year. The net profit after deducting non-recurring items was 275 million yuan, an increase of 5.93% year-on-year [3][6]. - The company has a healthy cash flow management, with a net cash inflow from operating activities of 516 million yuan in Q2, marking a positive turnaround [5][6]. - The company plans to distribute a cash dividend of 1.5 yuan per 10 shares, totaling 170 million yuan, which accounts for 52.70% of the net profit attributable to shareholders in the first half of the year [6]. Summary by Sections Revenue and Profitability - The company reported a revenue of 9.92 billion yuan, with a 12.10% increase year-on-year. The construction decoration revenue was 9.372 billion yuan, and the medical health revenue was 548 million yuan. New orders in construction decoration reached 12.884 billion yuan, up 14.22% year-on-year [3][6]. - The overall gross margin for the first half was 15.63%, an increase of 0.65 percentage points year-on-year. The net profit margin attributable to shareholders was 3.25%, a slight decrease of 0.06 percentage points year-on-year [5][6]. Cash Flow and Financial Health - The operating cash flow for the first half showed a net outflow of 4.52 billion yuan, which was a reduction of 7.99 billion yuan compared to the previous year. The cash collection ratio was 104.64%, up 9.92 percentage points year-on-year [5][6]. - The company’s asset-liability ratio decreased by 1.04 percentage points to 70.04%, and the accounts receivable turnover days reduced by 11.76 days to 225.99 days [5][6]. Strategic Initiatives - The company is actively expanding its overseas business, particularly in the Middle East, and has established subsidiaries in Dubai and Saudi Arabia. It aims to selectively undertake quality projects in the Asia-Pacific region [6]. - The company has secured significant BIPV projects, with confirmed revenue of approximately 314 million yuan from photovoltaic building projects, reflecting a year-on-year growth of 124% [6]. Future Outlook - The company expects to achieve net profits of 760 million yuan, 880 million yuan, and 1.01 billion yuan for the years 2024 to 2026, corresponding to current market valuations of 6.6, 5.7, and 5.0 times [6].