非核业务取得积极进展。根据公司半年报，军工业务领域，公司已形成AGV、特定场景装备、综合系统解决方案为主体的三大产品布局，随着军工领域需求逐步恢复，意向订单陆续落地；在核技术应用领域，公司通过内部立项新产品开发、独立团队孵化以及外部投资等深入布局核技术应用智能设备、核素及核药的供应体系，推进项目落地和产业化。Core views:
The recovery in performance is evident. The company released its semi-annual report on August 16. In the first half of '24, it achieved revenue of 94.69 million yuan, +2.21% year on year, net profit to mother of 12.48 million yuan, +18.91% year on year, after deducting 1.35 million yuan from non-return mother, +97.56% year on year; looking at Q2 alone, achieved revenue of 71.43 million yuan, YoY +75.68%, +207.11% month-on-month, net profit to mother 23.65 million yuan, YoY +405.84%, month-on-month + 311.68%, net profit margin was 15.6 million yuan, +478.51% YoY, +209.46%, gross profit margin 44.69%, -3.85pct YoY, +1.42pct month-on-month, net interest rate 33.30%, YoY +21.80pct, +83.41pct month-on-month. Net interest rate increased month-on-month, mainly due to increased revenue and more rigid expenses. Expenses declined and net interest rate increased significantly.
The nuclear-related business is progressing smoothly. According to the company's semi-annual report, the spent fuel post-processing process, the second phase of the demonstration plant project is being delivered normally, and the third phase of the demonstration plant project and the large plant's scientific research project have been tendered in an orderly manner. Currently, orders have increased significantly; orders for nuclear fuel component manufacturing and other special projects are relatively stable; and the nuclear power sector is a key expansion area for the company, and the business continues to expand.
The non-nuclear business has made positive progress. According to the company's semi-annual report, in the military business field, the company has formed three major product layouts with AGVs, specific scenario equipment, and integrated system solutions. As demand in the military sector gradually recovers, intended orders have been placed one after another. In the field of nuclear technology applications, the company has thoroughly laid out the supply system for intelligent equipment, nuclides and nuclear drugs for nuclear technology applications through internal project development, independent team incubation, and external investment to promote project implementation and industrialization.
Profit forecasting and investment advice. We expect Jingye Smart's 2024-2026 EPS to be 0.82/1.44/2.13 yuan/share. As the spent fuel project gradually progresses, the company will usher in a stage of rapid revenue growth, and the company is rapidly entering nuclear medicine, military industry, etc., and a new growth curve has been formed. Therefore, we will maintain a PE valuation of 40 times over 24 years, with a corresponding reasonable value of 32.64 yuan/share, maintaining a “buy” rating.
Risk warning. The risk of excessive business concentration and policy changes, the risk of high customer concentration, the risk of performance fluctuating due to discontinuous order acquisition, and seasonal risk of performance.