ZMJ(601717) 中原证券·2024-09-12 07:30Investment Rating - The report maintains a "Buy" rating for Zheng Coal Machinery (601717) [2][7][64] Core Viewpoints - The company achieved rapid growth in its mid-year report, driven by both coal machinery and automotive parts sectors [5][20] - The coal machinery segment continues to innovate and capture market share, particularly in intelligent mining equipment [6][39] - The automotive parts business is transitioning towards new energy applications, showing promising growth [32][34] Summary by Sections 1. Mid-Year Performance Highlights - In the first half of 2024, the company reported total revenue of 189.43 billion, a year-on-year increase of 4.02%, and a net profit of 21.62 billion, up 28.56% [4][13] - The coal machinery segment generated revenue of 98.04 billion, growing by 4.41%, while the automotive parts segment reached 91.49 billion, increasing by 3.58% [5][20] 2. Coal Machinery Business Growth - The coal machinery segment's net profit significantly increased, with a reported 21.57 billion, reflecting a 26.44% year-on-year growth [20][24] - The company maintains a market share of over 50% in hydraulic supports, a key product in the coal machinery sector [6][47] 3. Automotive Parts Business Transition - The automotive parts segment is focusing on new energy vehicle components, with notable growth in revenue from shock absorber seals and battery cooling systems [32][33] - The segment's revenue for the first half of 2024 was 90.96 billion, with a net profit of 0.94 billion, indicating a need for further improvement in profitability [34][35] 4. Stable Coal Demand and Market Concentration - The coal industry in China remains stable, with a focus on intelligent mining, which is expected to enhance market concentration [39][43] - The report highlights the increasing demand for intelligent mining equipment, which is anticipated to drive future growth for leading companies like Zheng Coal Machinery [42][43] 5. Profit Forecast and Valuation - The forecast for 2024-2026 predicts revenues of 399.09 billion, 437.26 billion, and 481.77 billion, with net profits of 39.71 billion, 43.73 billion, and 47.47 billion respectively [7][52] - The company's valuation remains attractive compared to peers, with a projected PE ratio decreasing from 4.89X in 2024 to 4.09X in 2026 [7][56]