2024H1:

1) The company achieved revenue of 79.115 billion yuan, +30.61% year over year; net profit to mother of 0.866 billion yuan, +117.23% year over year; net profit without return to mother of 0.82 billion yuan, -16% year over year; net profit to mother and net profit without return to mother were both higher than the performance forecast center.

2) Gross profit margin of 10.73%, -2.93pct; net profit margin of 1.76%, year-on-year +0.12pct; period expense ratio 7.73%, year-on-year -1.23pct, sales/management/R&D/finance rate -0.55pct/-0.43pct/+0.44pct, respectively; excellent three-fee control, and the increase in financial expenses ratio was mainly due to the large amount of net exchange earnings in the same period last year.

24Q2:

1) The company achieved revenue of 46.672 billion yuan, +37.58% year over month, +43.86% month on month; net profit to mother 0.782 billion yuan, +228.11% year on year, +835.19% month on month; net profit without return to mother 0.595 billion yuan, -37.13% year on year and +164.48% month on month.

2) Gross profit margin 11.11%, -2.53 pct year on year, +0.93 pct month on month; net profit margin 2.52%, +1.01 pct year on year, +1.85 pct month on month. The cost rate for the period was 7.56%, +0.23pct year on year, and the sales/management/R&D/finance expenses ratio was -0.73 pct/-0.61 pct/-0.33 pct/+1.91pct, respectively.

The core business line continues to recover and improve:

① The container manufacturing business increased both in volume and profit. 24H1 achieved revenue of 24.95 billion yuan, YOY +83%, and net profit of 1.276 billion yuan, YOY +66%; overall production and sales increased significantly year-on-year. Among them, the cumulative sales volume of dry cargo containers was 1.3827 millionteU, an increase of about 425.54% year-on-year, showing a significant recovery trend.

② The road transport vehicle business recovered quarterly, and Q2 net profit to mother increased by 12.45% month-on-month, demonstrating the ability to operate and develop resilience through the cycle.

③ Offshore engineering business 24H1 revenue increased 88.95% year on year, and profitability increased, reducing losses by 53.70% year on year; as of the end of June, CIMC Raffles maintained strong growth in new orders. The cumulative value of orders held in hand increased 20.9% year over year to 6.18 billion US dollars, and order size and quality continued to improve.

④ CIMC's offshore asset operation and management business continues to improve. Benefiting from the increase in rental rates and rates on the platform, the revenue and profitability of the offshore platform leasing business have improved markedly compared to the same period last year.

Profit forecast: We expect the company's net profit to be 2.52, 3.76, and 4.45 billion yuan respectively in 2024-2026, corresponding PE 16.1, 10.8, and 9.1 times, respectively; maintaining a “buy” rating.

Risk warning: risk of economic cycle fluctuations, financial market fluctuation and exchange rate risk, market competition risk, labor and environmental pressure and risk, risk of price fluctuations of major raw materials, etc.