电力设备：电网投资稳步提升，工控穿越底部周期

Investment Rating - The report indicates a stable growth outlook for the power equipment industry, with a focus on grid investment and industrial control recovery, suggesting a positive investment rating for the sector. Core Insights - The power equipment sector experienced steady revenue growth in H1 2024, with total revenue reaching 183.29 billion yuan, a year-on-year increase of 3.24%. However, net profit decreased by 21.80% to 13.05 billion yuan, primarily due to the poor performance of specific companies like TBEA [1][24][27] - The report emphasizes the importance of grid investment in supporting the domestic energy transition, with significant growth expected in high-voltage and smart grid equipment due to increasing renewable energy integration [2][41] - The industrial control market is gradually recovering, with a notable improvement in Q2 2024, as companies transition from passive destocking to active restocking, indicating a potential upward trend in demand [3][42][49] Summary by Sections Power Equipment - Domestic grid investment is on the rise, with H1 2024 investment reaching 254 billion yuan, a significant increase of 23.66% year-on-year. The total investment for 2024 is projected to exceed 600 billion yuan, focusing on high-voltage and digitalization [13][15] - The traditional power equipment segment saw revenue of 90.06 billion yuan in H1 2024, up 3.91%, while high-voltage equipment revenue reached 93.24 billion yuan, growing by 2.61% [24][27] - The overall gross margin for the power equipment sector was stable at 25.93%, with a slight increase of 0.27 percentage points year-on-year [30] Industrial Control - The industrial control market remains under pressure, with Q2 2024 market size declining by 4.3% year-on-year. However, traditional industries are showing signs of recovery, particularly in food and beverage, and paper manufacturing [42][46] - Major companies in the industrial control sector reported a revenue of 82.27 billion yuan in H1 2024, reflecting a year-on-year growth of 9.8% [51] - The report highlights a shift in inventory cycles, indicating a transition from passive destocking to active restocking, which may lead to increased demand in the near future [49] Hydrogen Energy - The hydrogen energy sector faced challenges in H1 2024, with revenue declining by 18.05% to 170.29 billion yuan and net profit dropping by 90.41% to 2.04 billion yuan. However, the introduction of supportive policies is expected to boost project activity in the second half of the year [4][12]