Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.88 per share [3][2]. Core Insights - The company reported a revenue of HKD 610 million for H1 2024, representing a year-on-year increase of 21.1%. Net profit reached HKD 80 million, up 16.7%, while net profit attributable to shareholders was HKD 51 million, an increase of 5.3% [2][1]. - The overseas business has seen significant growth, with a 47.2% increase in revenue, contributing to 47% of total revenue. The company is actively expanding its international presence, particularly in the energy sector, which is expected to enhance overall performance [2][1]. - The company's "3+X" strategy focuses on core businesses such as coal testing, oil testing, and non-energy bulk testing, which provide strong cash flow to support emerging ESG and carbon asset businesses. The company aims to capitalize on the dual carbon and green development trends [2][1]. Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of HKD 610 million, a 21.1% increase year-on-year. The net profit was HKD 80 million, up 16.7%, and the net profit attributable to shareholders was HKD 51 million, reflecting a 5.3% increase [2][1]. - The overseas revenue reached HKD 270 million, marking a substantial growth of 47.2%, while the Greater China region saw a more modest growth of 5.8% to HKD 340 million [2][1]. Strategic Initiatives - The company is implementing a "3+X" strategy, focusing on its main businesses while also developing ESG and carbon asset services. This approach is expected to provide a competitive edge in the market [2][1]. - The company is actively recruiting talent in the ESG sector to bolster its capabilities and prepare for future growth in this area [2][1]. Valuation Metrics - The target price of HKD 2.88 corresponds to a price-to-earnings (PE) ratio of 14.9x for 2024, 11.5x for 2025, and 8.8x for 2026, indicating a favorable valuation outlook [2][3].
力鸿检验：海外业务大增47%，ESG打造第二曲綫