禾望电气：海外业务开拓顺利，新能源略有承压

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 1.38 billion RMB in the first half of 2024, a year-on-year decrease of 10.3%, and a net profit attributable to shareholders of 150 million RMB, down 23.6% year-on-year [1] - The renewable energy business faced revenue pressure, but profitability improved with a gross margin of 35.7%, up 8 percentage points year-on-year [1] - The engineering business saw a positive revenue growth in Q2, with a year-on-year increase of 11.4% [1] - The overseas business expanded successfully, achieving a revenue of 96 million RMB, a year-on-year increase of 49.8% [1] - The company increased its R&D investment, leading to a slight rise in operating expenses, with an expense ratio of 26.4%, up 6 percentage points year-on-year [1] - The profit forecast for 2024-2026 has been adjusted to 530 million, 680 million, and 810 million RMB, corresponding to P/E ratios of 10, 7, and 6 times [1] Summary by Sections Performance Review - In H1 2024, the company achieved a revenue of 1.38 billion RMB, down 10.3% year-on-year, and a net profit of 150 million RMB, down 23.6% year-on-year [1] - Q2 revenue was 833 million RMB, a decrease of 10.5% year-on-year, with a net profit of 99 million RMB, down 20.0% year-on-year [1] Business Analysis - The renewable energy control business generated 1.05 billion RMB in revenue, down 12.2% year-on-year, with a gross margin of 35.7% [1] - The engineering transmission business saw Q2 revenue of 141 million RMB, up 11.4% year-on-year, with a gross margin of 39.13% [1] - The overseas revenue reached 96 million RMB, up 49.8% year-on-year, with a gross margin of 47.8% [1] Expense and Investment - The company’s expense ratio increased to 26.4%, primarily due to declining revenue and increased R&D investment [1] - The sales expense ratio was 9.8%, management expense ratio was 4.9%, and R&D expense ratio was 11.6%, all showing year-on-year increases [1] Profit Forecast and Valuation - The adjusted net profit forecast for 2024-2026 is 530 million, 680 million, and 810 million RMB, with corresponding P/E ratios of 10, 7, and 6 times [1]