SUMEC(SH:600710) Minsheng Securities·2024-08-19 07:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 7.72 yuan [4]. Core Views - The company achieved a revenue of 55.928 billion yuan in H1 2024, a year-on-year decrease of 13.30%, while the net profit attributable to shareholders was 570 million yuan, an increase of 12.12% year-on-year [1]. - The company's supply chain business revenue grew by 18.61% year-on-year, accounting for 73.91% of total revenue, while the industrial chain business revenue increased by 6.25% year-on-year, representing 25.93% of total revenue [1][2]. - The gross margin improved by 1.64 percentage points to 6.48% in H1 2024, driven by faster growth in the higher-margin industrial chain business [2]. - The company is focused on three key areas: advanced manufacturing, new energy and environmental protection, and modern services, which are expected to drive stable performance and dividends [2]. Financial Summary - For 2024, the company is projected to achieve a net profit of 1.089 billion yuan, reflecting a year-on-year growth of 5.8% [3]. - The earnings per share (EPS) is expected to be 0.83 yuan for 2024, with a price-to-earnings (PE) ratio of 9 [3][6]. - The company’s total revenue is forecasted to be 114.425 billion yuan in 2024, with a growth rate of -7.0% [5]. - The net profit margin for H1 2024 was 1.02%, a decrease of 1.21 percentage points year-on-year [2].