中国西电：24H1扣非增速良好，毛利率提升显著

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company reported a total revenue of 10.34 billion yuan for the first half of 2024, representing a year-on-year increase of 7.42%. The net profit attributable to the parent company was 0.452 billion yuan, up 5.23%, while the net profit excluding non-recurring items reached 0.472 billion yuan, showing a significant growth of 22.87% [5][6]. - In Q2 alone, the company achieved a revenue of 5.631 billion yuan, a year-on-year increase of 17.95%, with a net profit of 0.249 billion yuan, up 3.63%, and a net profit excluding non-recurring items of 0.281 billion yuan, which grew by 34.34% [5][6]. - The company's gross margin improved significantly, reaching 18.93% in the first half of the year, an increase of 2.39 percentage points year-on-year, with Q2 gross margin at 19.83%, up 2.11 percentage points year-on-year [6]. Revenue Analysis - The switchgear segment generated revenue of 4.081 billion yuan, a year-on-year increase of 25.07%, while the transformer segment achieved revenue of 4.468 billion yuan, up 21.64%. Both major business segments showed substantial growth, with other segments like capacitors and surge arresters also exceeding 20% growth, indicating a robust infrastructure demand in the power grid [6]. - However, revenue from power engineering and power electronics decreased by 77.18%, primarily due to the delivery schedule impacts of UHVDC and general contracting businesses [6]. Profitability Insights - The company’s net profit margin after excluding non-recurring items reached 4.56%, an increase of 0.58 percentage points year-on-year. The subsidiaries also performed well, with Xikai Electric achieving a net profit of 0.274 billion yuan, up 55%, and Xikai Limited with a net profit of 0.081 billion yuan, up 71% [6]. Expense Overview - The company’s total expense ratio was 13% in the first half, an increase of 1.22 percentage points year-on-year. The sales expense ratio increased by 0.44 percentage points due to enhanced market development efforts, while the management expense ratio rose by 0.71 percentage points mainly due to internal retirement costs [6]. Dividend Announcement - The company plans to distribute a mid-term dividend totaling 0.18 billion yuan, which accounts for 39.66% of the net profit attributable to the parent company for the first half of 2024 [6]. Future Outlook - Excluding UHV, the company’s order growth in the first half was excellent. With UHV projects gradually being delivered, revenue and profit are expected to rise. The forecast for net profit attributable to the parent company is projected to reach 1.2 billion yuan and 1.8 billion yuan for 2024 and 2025, respectively, corresponding to PE ratios of approximately 29 and 19 times [6].