单Q2，公司实现营业收入25.1 亿元，同比增长14.5%；归母净利润3.7亿元，同比下降11.3%；扣非归母净利润3.5 亿元，同比下降0.8%。Incident Overview
The company released its 2024 mid-year report, achieving operating income of 4.25 billion yuan, a year-on-year increase of 16.8%; net profit to mother of 0.52 billion yuan, up 1.2% year on year; net profit after deducting non-return to mother of 0.47 billion yuan, an increase of 11.4% year on year.
The current GDR capital exchange loss amount was 2.842 million yuan (before income tax). Excluding this effect, net profit returned to mother was 0.52 billion yuan in the first half of the year, an increase of 49.8% over the previous year, mainly due to improved gross margin, cost ratio optimization, and improved operational efficiency.
In Q2 alone, the company achieved operating income of 2.51 billion yuan, a year-on-year increase of 14.5%; net profit to mother was 0.37 billion yuan, a year-on-year decrease of 11.3%; net profit without return to mother was 0.35 billion yuan, a year-on-year decrease of 0.8%.
Steady growth in various downstream areas, and continuous breakthroughs in overseas business
1) The gross profit margin for the first half of the year was 33.2%, up 0.75 percentage points from the same period last year; of these, gross margin reached 34.8% in the second quarter, up 3.7 percentage points from the first quarter.
2) By business: control systems (control systems and control system+instrumentation) achieved a total revenue of 1.73 billion yuan, an increase of 17.7%; industrial software (industrial software and control system+software+others) achieved a total revenue of 1.11 billion yuan, an increase of 3.2% year on year; instruments achieved revenue of 0.35 billion yuan, an increase of 72.2% year on year.
3) In terms of industry, revenue from the petrochemical industry increased by 27.0%, revenue from the chemical industry increased by 26.0%, revenue from the oil and gas industry increased by 117.3%, and revenue from the pharmaceutical and food industry increased by 29.2%.
4) The sales expense ratio, management expense ratio, and R&D expense ratio were 8.1%, 4.5%, and 10.5% respectively, a total decrease of 3.3 percentage points over the same period last year.
5) Net cash flow from operating activities from January to June 2024 was -0.42 billion yuan, an increase of 57.3% over the same period last year, mainly due to the optimization of the company's sales contract and procurement contract terms.
Overseas business is growing rapidly, and equity incentives show confidence
In the first half of 2024, the company's overseas business revenue was 0.343 billion yuan, an increase of 188.22% over the previous year, accounting for about 8.11% of the company's main revenue. The company signed a new overseas contract of 0.5 billion yuan, an increase of 63.8% over the previous year.
The company's cooperation with high-end international customers such as Saudi Aramco, German BASF BASF, Indonesian National Petroleum Company Pertamina, Thai Indorama, and Malaysian Petroleum Company Petronas is deepening.
The company issued a draft equity incentive. The company-level performance assessment targets for restricted stocks granted by the incentive plan are based on 2023 net profit. The net profit growth rates for 2024-2026 will not be less than 20%, 40%, and 60%, respectively, demonstrating confidence in future growth.
Investment advice
We believe that the company seizes industry opportunities and actively expands overseas markets, which is expected to bring about continuous growth in performance. The company is expected to achieve revenue of 10.54/12.74/15.32 billion yuan in 2024-2026 (previous value was 11.11/14.31/18.16 billion yuan in 2024-2026), up 22.3%/20.8%/20.3% year-on-year (previous value 2024-2026 was 28.9%/28.8%/26.9%); net profit to mother of 1.35/1.63/1.97 billion yuan (previous value 2024-2026 was 1.34 billion yuan) /1.66/2.04 billion yuan), a year-on-year increase of 22.3%/20.7%/21.2% (previous value 2024-2026 was 21.5%/23.8%/23.1%), maintaining the “buy” rating.
Risk warning
1) Downstream demand falls short of expectations; 2) R&D breakthroughs fall short of expectations; 3) Market expansion falls short of expectations; 4) Overseas business policy risks.