1）2024H1 综合毛利率34.61%，同比+3.49pct；净利率14.69%，同比+0.76pct。2024Q2 综合毛利率37.21%，同比+5.63pct，环比+6.00pct；净利率19.88%，同比+1.69pct，环比+7.83pct。Incident: The company released its 24-year semi-annual report, and the results slightly exceeded expectations.
1) 2024H1 company revenue of 6.997 billion yuan, +26.11%; net profit to mother of 1.15 billion yuan, +32.23% year over year; deducted non-net profit of 1.078 billion yuan, +32.13% year over year; 2) Corresponding Q2 revenue of 3.973 billion yuan, +20.37% year over month, +31.34% month on month; net profit attributable to mother 0.786 billion yuan, +315.72% month on month; net profit net of net profit 0.703 billion yuan, +27.73% YoY, +87.32% month-on-month;
Gross margin increased significantly, and sales/R&D/finance rates increased.
1) 2024H1 comprehensive gross profit margin of 34.61%, +3.49pct year on year; net profit margin 14.69%, +0.76pct year on year. 2024Q2 comprehensive gross profit margin 37.21%, +5.63pct yoy, +6.00pct month-on-month; net profit margin 19.88%, +1.69pct yoy, +7.83pct month-on-month.
2) The 2024H1 sales/management/R&D/finance cost rates were 6.98%, 5.86%, 3.97%, and 0.77%, respectively, +0.92pct/-0.01pct/+0.18pct/+1.85pct, respectively, and the year-on-year expense ratio was +2.94 pct; the main reason for the increase in financial expense ratio was 0.069 billion yuan, while 2024H1 had an exchange loss of 0.041 billion yuan. 2023H1 During the reporting period, the company increased market development and new product development, and the sales/R&D expense ratio increased.
Intelligent distribution sector: Deepen local operations and promote overseas distribution.
1) 2024H1's intelligent power distribution business revenue was 5.38 billion yuan, +26.28% year-on-year. Achieved net profit of 0.971 billion yuan, +27.37% year over year, net profit margin 18.05%, +0.43 pct year over year.
2) As of the end of the reporting period, the total number of on-hand orders was 14.894 billion yuan, +25.74% over the same period last year. Among them, the cumulative number of overseas orders in hand was 6.22 billion yuan, or +40.47% year on year, and the cumulative number of domestic orders in hand was 8.675 billion yuan, or +16.94%.
3) The company continues to promote the localization of the electricity business: Currently, the company has five major overseas production bases in Brazil, Indonesia, Poland, Germany and Mexico, accounting for about 50% of overseas production capacity. In the first half of the year, the company relied on German factories to make progress in the German market and received small-batch orders one after another.
4) Distribution went overseas to achieve phased results: On the basis of the first breakthrough in the Middle East ring network cabinet in 2023, it successfully won the bid for Greece's 0.466 billion yuan transformer project in 2024, and obtained the first distribution order in the European market. Recently, the company also won the bid for Mexico's 0.079 billion yuan distribution transformer project, making a breakthrough in the American market.
Medical service sector: rapid growth in performance and continuous chain layout.
1) The 2024H1 medical service business achieved revenue of 1.613 billion yuan, +26.53% year-on-year. Among them, rehabilitation medical business revenue was 0.814 billion yuan, +36.54% year over year; comprehensive and other medical business revenue was 0.798 billion yuan, +17.71% year over year. The 2024H1 medical services sector achieved net profit of 0.183 billion yuan, +60.22% year-on-year, and a net interest rate of 11.36%, +2.39pct year-on-year.
2) By the end of the reporting period, the number of hospitals under the company had reached 34, including 28 rehabilitation hospitals. 6 new hospitals were added during the reporting period, and the total number of beds had exceeded 10,000.
Investment advice: Looking forward to the future, the company's performance is expected to continue to grow rapidly under two-wheel drive in the electricity distribution and medical service business. We maintain our previous profit forecast. We expect that in 2024-2026, the company's revenue will be 14.567 billion yuan, 17.796 billion yuan, and 20.933 billion yuan, respectively, with year-on-year growth rates of 27.09%, 22.16%, and 17.63% respectively; net profit to mother will be 2.306 billion yuan, 2.806 billion yuan, and 3.334 billion yuan, respectively, with year-on-year growth rates of 21.13%, 21.68%, and 18.83% respectively; EPS is 1.63/1.99/2.36 yuan respectively, and the current stock price is 19/16/13 times PE, respectively, maintaining a “buy” rating.
Risk warning: Power grid investment falls short of expectations, overseas market expansion falls short of expectations, industry competition intensifies, raw material prices fluctuate greatly, etc.
