2024Q2 公司实现营业收入27.6 亿元，同比增长22.55%，环比增长110.43%；实现规模净利润3.8 亿元，同比增长5.54%，环比增长44.6%；实现扣非净利润3.55 亿元，同比微降0.7%，环比增长83.77%。Incidents:
The company released its 2024 semi-annual report. 2024H1 achieved revenue of 4.068 billion yuan, up 10.31% year on year; net profit due to mother of 0.644 billion yuan, up 4.47% year on year, mainly due to the government's collection and storage of state-owned construction land use rights, increasing total profit by 0.05 billion yuan; net profit after deducting non-return mother of 0.548 billion yuan, down 9.5% year on year, mainly due to a 10% year-on-year decrease in revenue from submarine cable systems with high added value in the current product structure.
2024Q2 Results Exceed Expectations
2024Q2 achieved operating income of 2.76 billion yuan, up 22.55% year on year and 110.43% month on month; realized net profit of 0.38 billion yuan, up 5.54% year on year and 44.6% month on month; deducted non-net profit of 0.355 billion yuan, a slight decrease of 0.7% year on year, and an increase of 83.77% month on month.
Overseas layout deepened, orders continued to break through
In recent years, the company has actively promoted overseas layout and continued to achieve breakthroughs in overseas orders. In January 2024, the company announced that it plans to invest and subscribe for about 8.5% of the shares of the British XLCC Cable Systems Company and about 2.4% of the shares in Xlinks First Renewable Energy Company to deepen the overseas market layout. In July 2024, the company issued an “Prompt Notice on winning the bid”. The winning bids include 1.8 billion yuan for Inch Cape Offshore's submarine cable, 0.15 billion yuan for SSE's submarine cable, etc., along with the company's future overseas The layout continues to deepen, and the company's ability to take orders from overseas is expected to be further improved.
Seabreeze demand is expected to pick up, and company orders are expected to increase
As of August 12, 2024, the company's on-hand orders for submarine cable systems reached 8.9 billion yuan, including 2.95 billion yuan for submarine cable systems, 1.43 billion yuan for offshore cable systems, and 220 kV and above submarine cables and umbilical cord cables account for about 22% of the total number of on-hand orders. Looking ahead to 2024Q3-Q4, the domestic sea wind is expected to enter the peak bidding season. According to our statistics, as of July 2024, the scale of the Haifeng project that has been approved domestically but not tendered by the equipment side or EPC general contract is close to 18 GW. As a leading submarine cable company, orders are expected to grow sequentially as industry tenders begin.
Profit forecasting and investment advice
We expect the company's revenue for 2024-2026 to be 8.97/11.39/13.83 billion yuan, respectively, with growth rates of 22.7%/27.0%/21.4%, net profit to mother of 1.32/1.91/2.48 billion yuan, respectively, growth rates of 31.6%/45.0%/30.0%, EPS 1.9/2.8/3.6 yuan/share, respectively, corresponding PE 25/17/13 times. Considering that the company is a leading domestic submarine cable company, leading product technology and profitability, maintaining a “buy” rating.
Risk warning: Seabreeze demand falls short of expectations, production expansion falls short of expectations, raw material prices fluctuate