Gold Card Intelligence released its 2024 semi-annual report. In the first half of 2024, the company achieved operating income of 1.484 billion yuan, +2.10% year-on-year; net profit to mother of 0.218 billion yuan, +5.29% year-on-year; deducted non-net profit of 0.19 billion yuan, +4.48% year-on-year. In the second quarter of 2024, the company achieved operating income of 0.765 billion yuan, -6.05% YoY; net profit to mother was 0.119 billion yuan, or -5.48% YoY.
The company's Q2 performance fluctuated, mainly due to increased industry compliance and quality requirements, which led to a slowdown in the company's commercial gas meter shipment inspection pace. The company attaches great importance to product quality. It is expected that stricter compliance will have a greater impact on small and medium-sized gas meter companies. In the long run, it may accelerate the concentration of industry share towards leading companies.
By business, 24H1's civil gas business revenue was +0.22% year over year, gross margin +1.35pct year over year; industrial and commercial gas business revenue +13.47%, gross margin -0.21pct year over year; smart water revenue +12.59%, gross margin -7.09pct year on year; smart utility software business revenue -12.52% year over year, gross margin +8.05 pct year on year. Since this year, the bottle reform policy has been gradually implemented, and the industrial and commercial gas business is growing steadily. At the same time, the gross margin of the smart water business declined significantly from year to year. The judgment was mainly due to fierce competition in the smart water meter market, which led to a decline in average product prices.
By region, 24H1 achieved overseas revenue of 40.9944 million yuan, an increase of 7.8% over the previous year. Since this year, the company has taken overseas business expansion as one of its key strategies, mainly exporting to Southeast Asia, Argentina, Brazil and other regions. Looking at it now, overseas business is progressing steadily and is already bearing fruit.
In the first half of the year, the Jinka smart ultrasonic gas meter passed the NMI hydrogen mixing test certification, becoming the first gas meter in China to pass the NMI hydrogen mixing test certification. As a leader in the field of utility metering, the company continues product research and development, and has obtained product pricing rights and first-mover advantages. The increase brought by mixed hydrogen metering to the company's performance is worth looking forward to.
Collaborate with upstream and downstream to jointly promote digital gas reform. The company and Hangzhou Gas and Shenhao Technology jointly established Hangran Digital Technology Co., Ltd. to carry out smart gas informatization, automation and smart hardware terminal business; the company signed a memorandum of cooperation with Hisilicon Technology Co., Ltd. to carry out in-depth cooperation in the fields of smart gas, smart water, new energy, etc. based on the development, application and promotion of Starlight technology; and strategic cooperation with Everweft Lithium Energy to jointly promote innovation and development in the field of smart metering to provide customers with more excellent products and services.
Based on the semi-annual report, we lowered the company's profit forecast. It is estimated that in 24/25/26, the company will achieve operating income of 3.466/4.092/4.889 billion and net profit to mother of 0.458/0.555/0.639 billion yuan, corresponding to PE 9.8/8.0/7.0 times, respectively. Considering that urban gas renewal is still in progress, the company's “Highly Recommended” rating was maintained.
Risk warning: geopolitical risks, gas transformation falling short of expectations, fierce competition for water meters, etc.