Changgao NEET(SZ:002452) Huachuang Securities·2024-09-14 12:11Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 9.5 CNY, compared to the current price of 6.98 CNY [1]. Core Insights - The company reported a revenue of 729 million CNY for the first half of 2024, representing a year-on-year increase of 12.0%. The net profit attributable to shareholders reached 121 million CNY, up 42.8% year-on-year, while the net profit excluding non-recurring items was 112 million CNY, reflecting a 43.9% increase [1]. - In Q2 2024, the company achieved a revenue of 475 million CNY, which is a 12.2% increase year-on-year and an 87.3% increase quarter-on-quarter. The net profit for the quarter was 92 million CNY, showing a year-on-year growth of 42% and a quarter-on-quarter growth of 208.6% [1]. - The company’s subsidiaries, including Changgao High Voltage Switch, Changgao Electric, Changgao Senyuan, and Changgao Complete Equipment, reported revenues of 175 million CNY, 365 million CNY, 106 million CNY, and 80 million CNY respectively, with year-on-year growth rates of 6.9%, 17.6%, 0.27%, and 14.1% [1]. - The company secured multiple bids for 500kV switchgear, with a total bid amount of 987 million CNY in the first four batches of State Grid's bidding, marking a 27% increase compared to the previous year [1]. - The financial risk from impairments is expected to be gradually eliminated, and the company’s growth trajectory appears clear moving forward, with projected net profits of 310 million CNY, 380 million CNY, and 460 million CNY for 2024, 2025, and 2026 respectively [1]. Financial Summary - Total revenue is projected to reach 1,804 million CNY in 2024, with a year-on-year growth rate of 20.8%. The net profit attributable to shareholders is expected to be 307 million CNY, reflecting a growth rate of 77.4% [2]. - Earnings per share (EPS) are forecasted to be 0.49 CNY for 2024, with a price-to-earnings (P/E) ratio of 14 [2].