研发投入维持高水平，保障技术领先优势，前瞻性研发为新业务奠基。研发投入：公司研发费用自2018 年的3.5 亿元提升至2023 年的9.2 亿元，CAGR 达21.6%。公司持续推进和完善思源集成产品开发体系建设，为快速推出技术领先、高质量、低成本的产品提供了流程和组织保障。截至1H24，公司共有授权专利869 项。公司共有软件著作权150 项。技术优势：取得了多项国内外先进或领先水平的核心技术，使公司产品与国内同类产品相比具有技术领先、成本低、品质高等特点，在国内居于领先水平。前瞻性研发：公司也在加大前瞻性技术投入，如柔性直流输电、光电技术、储能、物联网、汽车电子等，为新业务的拓展奠定基础。Incident: The company released its 2024 semi-annual report. In the first half of 2024, the company achieved revenue of 6.166 billion yuan, up 16.3% year on year; net profit to mother was 0.887 billion yuan, up 26.6% year on year; net profit after deduction was 0.841 billion yuan, up 23.5% year on year. 1H24 gross margin was 31.75%, up 2.7 pct year on year; net margin was 14.54%, up 0.8 pct year on year.
Looking at a single quarter, 24Q2 achieved revenue of 3.509 billion yuan, up 12.1% year on year, net profit to mother of 0.524 billion yuan, up 8.7% year on year; net profit after deducting 0.5 billion yuan, up 0.3% year on year.
In terms of profitability, 24Q2 gross margin was 32.54%, up 1.5 pct year on year and decreased 1.8 pct month on month; net sales margin was 15.25%, down 0.6 pct year on year and 1.7 pct month on month. In terms of expenses, 24Q2 sales expenses increased by 43.0% year on year, and the cost ratio increased by 1.0 pct; management expenses increased 4.5% year on year, and the cost ratio decreased by 0.2 pct;
R&D investment maintains a high level of technological leadership, and forward-looking R&D lays the foundation for new businesses. R&D investment: The company's R&D expenses increased from 0.35 billion yuan in 2018 to 0.92 billion yuan in 2023, and the CAGR reached 21.6%. The company continues to promote and improve the Siyuan integrated product development system, providing process and organizational guarantees for the rapid launch of technology-leading, high-quality and low-cost products. As of 1H24, the company has authorized 869 patents. The company has 150 software copyrights. Technical advantages: It has obtained a number of advanced or leading core technologies at home and abroad, so that the company's products have the characteristics of leading technology, low cost and high quality compared with similar domestic products, and are at the leading level in China. Forward-looking R&D: The company is also increasing investment in forward-looking technologies, such as flexible DC transmission, optoelectronic technology, energy storage, Internet of Things, automotive electronics, etc., to lay the foundation for new business expansion.
Actively expand overseas business, achieve rapid business growth, and significantly increase the share of revenue. The company's overseas revenue of 1H24 was 1.515 billion yuan, and the revenue growth rate reached 40.0%. The revenue share increased from 17.32% in 2023 to 24.56% of 1H24. In overseas markets, power transmission and distribution equipment in regions with developed electricity such as Europe and North America has been in operation for many years, and there is plenty of room for renovation and replacement; power infrastructure construction in Southeast Asia, the Middle East, Africa and other regions is lagging behind, and there are large new construction business opportunities, and there is plenty of market space.
Investment advice: We expect the company to achieve revenue of 15.444/18.646/21.916 billion yuan in 2024-2026, net profit to mother of 2.067/2.527/3.027 billion yuan, EPS 2.67/3.26/3.91 yuan respectively, and PE 25/20/17 times, covering the first time and giving it a “recommended” rating.
Risk warning: Power grid investment falls short of expectations; overseas market development falls short of expectations; UHV construction falls short of expectations.
