全球智能电网建设加速，电表类产品订单高增：上半年公司电表类产品实现营业收入11.5 亿元，实现毛利率38.9%，较2023 全年增长4.0pct。受益于全球智能电网建设加速，公司国内、海外电表产品订单高增。国内方面，上半年公司国网、南网中标电表类产品6.44 亿元，同比增长40.6%；海外方面，上半年公司全资子公司EGM 中标合同金额超8 亿元，其中在中东地区与当地知名企业ECC 以战略投资方式合作以来，累计订单金额超10 亿元。Brief performance review
On August 19, 2024, the company disclosed its semi-annual report. The first half of the year achieved revenue of 3.46 billion yuan, an increase of 7.9% over the previous year, and realized net profit of 0.6 billion yuan to mother, an increase of 3.0% over the previous year. Among them, Q2 achieved revenue of 1.91 billion yuan, a year-on-year decrease of 11.0%; net profit to mother of 0.38 billion yuan, a year-on-year decrease of 1.0%.
Management analysis
Global smart grid construction accelerated, and orders for electric meter products increased: in the first half of the year, the company achieved operating income of 1.15 billion yuan, achieving a gross profit margin of 38.9%, an increase of 4.0 pct over the full year of 2023. Benefiting from the acceleration of global smart grid construction, the company's domestic and overseas electricity meter product orders have increased. On the domestic side, the company's State Grid and Southern Grid won the bid of 0.644 billion yuan for electric meter products in the first half of the year, an increase of 40.6% over the previous year; in the first half of the year, the company's wholly-owned subsidiary EGM won the bid amount over 0.8 billion yuan. Among them, since ECC cooperated with well-known local companies in the Middle East through strategic investment, the cumulative order amount exceeded 1 billion yuan.
New energy power plants are being connected to the grid at an accelerated pace, and the scale of operation and maintenance continues to expand: the company achieved revenue of 0.95 billion yuan and achieved a gross profit margin of 16.4%, an increase of 4.9 pcts over the full year of 2023. In the first half of the year, the company's power plant accelerated construction and grid connection, adding more than 200MW of grid-connected scale, and starting more than 500MW of new projects. Currently, the project under construction exceeds 1,200MW. The company signed strategic cooperation agreements with energy-oriented central state-owned enterprises such as CGN New Energy to further consolidate the company's competitive advantage in the field of investment, operation and system integration of new energy power plants. By the end of June 2024, the installed capacity of the power plant project contracted by the company reached 14.7 GW, and the operation and maintenance capacity increased by 50% over the same period last year.
The profit of the energy storage business improved significantly. The Saudi Pack factory was put into operation in Q4: the company's energy storage business achieved revenue of 0.74 billion yuan, achieving a gross profit margin of 20.1%, an increase of 4.0 pct over the full year of 2023, and profitability continued to recover. Lin Yang Energy Storage, a holding subsidiary of the company, completed the supply and grid connection of several energy storage projects in the first half of the year, achieving net profit of 0.144 billion yuan, an increase of 105% over the previous year. Construction of the Saudi Pack plant, a joint venture between the company and ECC, began in the first half of the year, and is expected to be put into operation in Q4.
Profit Forecasts, Valuations, and Ratings
According to the company's semi-annual report and our latest judgment on the industry, the 2024-2026 net profit forecast was slightly raised to 1.22, 1.42, and 1.65 billion yuan, corresponding to PE of 11, 9, and 8 times, maintaining the “buy” rating.
Risk warning
Competition in the industry intensified; project implementation fell short of expectations; raw material prices fluctuated.
