2024H1's net profit to mother was +9.5% YoY, maintaining the “Accumulation” rating
In the first half of 2024, the company achieved a total operating income of 17.229 billion yuan, +28.5% year on year; net profit to mother 0.306 billion yuan, +9.5% year over year; net profit after deducting non-return to mother 0.116 billion yuan, +64.8% year over year.
Among them, the Q2 quarter achieved operating income of 8.784 billion yuan, +18.9% year on year; net profit to mother 0.137 billion yuan, -9.1% year over year; net profit after deducting non-return to mother 0.023 billion yuan, or -46.0% year on year. We maintain our forecast that the company's net profit to mother for 2024-2026 is 0.83/1.3/1.53 billion yuan, respectively, and the corresponding PE is 22/14/12 times, respectively. Comparatively, the company Wind agreed to expect an average PE value of 21 times. The company is a leading manufacturer in the HAECO and offshore industries, and its international competitiveness is outstanding. We gave the company 27 times PE in 24 years, maintained a target price of 4.32 yuan, and maintained an “increase” rating.
24Q2 gross margin was +2.3 pp year over year, and expenses were well controlled during the period
In the first half of 2024, the company's gross profit margin was 12.1%, -0.5pp. In the Q2 quarter of 2024, the company's gross profit margin was 13.5%, +2.3pp year-on-year, and profitability continued to increase. In terms of the cost rate for the period, the sales expense ratio for the first half of the year was 0.6%, -0.15pp; the management expense ratio was 2.3%, -0.76pp; the financial expense ratio was 1.2%, -0.11pp; and the R&D expense ratio was 3.6%, +0.30pp, mainly due to the increase in the company's expenditure on costly R&D projects. The cost rate for the total period was 7.7%, -0.73pp year on year, and the overall cost control for the period was good.
The world's leading HAECO leader, upgrading technology to large-scale and automated
As a leader in the global port machinery industry, the company sells products in more than 107 countries and regions around the world.
In the HAECO industry, high-end, greening, and intelligence have become industry trends. Demand for the construction and renovation of automated port terminals has increased, and demand for procurement of complete machinery has gradually been released. The company independently developed new products and technologies such as the world's first double 40-foot container dock bridge, fully automated double car dock bridge, and bidirectional anti-shake systems, which have promoted the technological upgrading of automated container terminals around the world. The automated terminal equipment and systems provided by the company are widely used in nearly 60 automated terminal projects at home and abroad, accounting for more than 70% of the world's automated terminals. In the first half of '24, the total amount of new contracts and winning bids for the company's port machinery business was US$2.464 billion.
The upgrading and transformation of the manufacturing industry has ushered in new opportunities. R&D and innovation lead the company to firmly grasp the development direction of “high-end, intelligent and green” equipment manufacturing, and continuously launch new technologies, products and services leading the development of the industry. The company overcame the core technology of the terminal production control system, pioneered the terminal operating system (TOS) integrated with the equipment management system (ECS), and comprehensively improved system integration capabilities; the company released a new green stand-alone product, and the ModelSASC high-speed automated rail crane achieved ultra-lightweight design; the company built the “Tiankun” dredger to achieve a breakthrough in the core technology of China's large-scale self-propelled winch dredgers, making the design and construction technology of China's dredgers at the forefront of the world.
Risk warning: Offshore business recovery is less than expected, interest rate and exchange rate risks, raw material supply risks.