DRTG(600329) 长城证券·2024-08-19 09:40Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [5][14]. Core Insights - The company reported a stable growth in industrial revenue for Q2 2024, with a year-on-year increase of 4.1% in industrial revenue, despite a decline in overall revenue due to a significant drop in commercial revenue [2]. - The gross margin improved by 3.4 percentage points in Q2 2024, although net profit margin decreased by 2.1 percentage points to 14.3% due to reduced investment income [2]. - The company is focusing on channel penetration and regional expansion to enhance sales of key products, with notable growth in provinces like Guangdong and Jiangsu [2]. Financial Performance Summary - For H1 2024, the company achieved revenue of 3.96 billion yuan, a year-on-year decline of 3.0%, and a net profit of 660 million yuan, down 9.0% year-on-year [1]. - The projected revenue for 2024 is 8.987 billion yuan, with a year-on-year growth rate of 9.3%, and net profit is expected to reach 1.178 billion yuan, reflecting a growth rate of 19.3% [1][10]. - The company's EPS is projected to increase from 1.28 yuan in 2023 to 1.53 yuan in 2024 [10]. Revenue and Profitability Metrics - The company's operating income for 2022 was 8.249 billion yuan, with a net profit of 862 million yuan, while the 2023 figures show a slight decline in revenue to 8.222 billion yuan but an increase in net profit to 987 million yuan [9]. - The expected operating income for 2025 is 9.725 billion yuan, with a net profit forecasted at 1.401 billion yuan [9][10]. - The return on equity (ROE) is projected to improve from 14.6% in 2023 to 17.4% in 2024 [10].