传统行业持续增长，新兴行业呈现结构性增长。国家积极推进控制系统设备更新，工业自动化及智能制造相关产品景气度较好，分产品：控制系统（控制系统及控制系统+仪表）共实现收入17.25 亿元，同比+17.65%；工业软件（工业软件及控制系统+软件+其他）共实现收入11.10 亿元，同比+3.23%；仪器仪表实现收入3.53 亿元，同比+72.18%；S2B 平台业务实现收入8.76 亿元，同比+29.61%。分行业：石化、化工行业收入持续稳定增长，增速分别为+26.95%、+26.03%，油气、制药食品饮料行业景气度较好，收入持续保持较快增长趋势，增速分别为+117.32%、+29.23%，主要优势行业石化、化工的需求依然保持增长，公司深挖了油气、智慧煤矿、白酒等重点新兴行业结构性需求增长机会，为业绩增长提供有力支撑。Matters:
On August 19, the company released its 2024 semi-annual report. In the first half of 2024, it achieved operating income of 4.252 billion yuan, a year-on-year increase of 16.78%; net profit to mother was 0.517 billion yuan, an increase of 1.16% year on year; and net profit without return to mother was 0.472 billion yuan, an increase of 11.41% year on year. Excluding GDR exchange gains and losses, net profit to mother was 0.519 billion yuan, an increase of 49.80% over the previous year. In Q2 2024, revenue was 2.514 billion yuan, up 14.49% year on year, and net profit to mother was 0.371 billion yuan, down 11.26% year on year.
Commentary:
Traditional industries continued to grow, and emerging industries showed structural growth. The country actively promotes control system equipment updates, and products related to industrial automation and intelligent manufacturing are booming. By product: control system (control system and control system+instrument) achieved total revenue of 1.725 billion yuan, +17.65% year over year; industrial software (industrial software and control system+software+other) achieved total revenue of 1.11 billion yuan, +3.23% year over year; instruments achieved revenue of 0.353 billion yuan, +72.18% year over year; S2B platform business achieved revenue of 0.876 billion yuan, +29.61% year over year. By industry: The revenue of the petrochemical and chemical industries continued to grow steadily, with growth rates of +26.95% and +26.03% respectively. The oil and gas, pharmaceutical, food and beverage industries were prosperous, and revenue continued to maintain a rapid growth trend, with growth rates of +117.32% and +29.23% respectively. Demand for petrochemicals and chemicals in the main dominant industries continued to grow. The company dug deep into structural demand growth opportunities in key emerging industries such as oil and gas, smart coal mining, and liquor, providing strong support for performance growth.
International business progressed smoothly, and performance broke through rapidly. The company's overseas business revenue was 0.343 billion yuan, up 188.22% year on year, accounting for 8.11%. The company's international marketing system focuses on deploying Southeast Asia, the Middle East, Central Asia, Europe, America, Japan and other regions. The company has an overseas team of nearly 300 people, and has set up 6 subsidiaries in Singapore, Saudi Arabia, Kazakhstan, etc., and overseas localization capabilities have been greatly improved.
2024H1 signed a new overseas contract of 0.5 billion yuan, a year-on-year increase of 63.82%.
The fee rate continued to improve, and a draft equity incentive plan was issued. In 2024, H1 gross margin was 33.23%, +0.75pct year on year; net margin was 12.32%, -1.96pct year on year; in terms of cost ratio, sales, management, and R&D expenses were 8.11%, 4.88%, and 10.45%, respectively, -1.20pct, -1.12pct, and -0.71pct, respectively. The overall cost ratio continued to improve. The company announced the 2024 restricted stock incentive plan: the number of restricted shares to be awarded is 2.945 million shares, accounting for 0.37% of the total share capital, involving 63 incentive recipients, including company executives, core technical personnel, etc., and the grant price is 21.53 yuan/share. The assessment target is based on 2023 net profit, and the net profit growth rates for 2024-2026 are 20%, 40%, and 60%, respectively.
Investment advice: As a leading enterprise in intelligent manufacturing in the process industry, the company's forward-looking AI layout is expected to continue to benefit. We expect the company's 2024-2026 revenue to be 10.82 billion yuan, 13.284 billion yuan, 15.954 billion yuan, corresponding growth rates of 25.5%, 22.8%, and 20.1%; net profit to mother is 1.312 billion yuan, 1.548 billion yuan, and 1.817 billion yuan, corresponding growth rates of 19.1%, 18.0%, and 17.3%; corresponding EPS (diluted) is 1.66 yuan, respectively , 1.96 yuan, 2.30 yuan. In terms of valuation, with reference to comparable companies, we gave the company 30xPE in 2024, corresponding to a target price of 49.80 yuan, maintaining a “strong” rating.
Risk warning: macroeconomic downturn; overseas expansion falls short of expectations; R&D progress falls short of expectations; market competition is fierce.