中国通号：半年报业绩点评：收入同比下降14%，加快聚焦高质量发展主线

Investment Rating - The investment rating for the company is "Outperform the Market" [3][10] Core Views - The company reported a 14% year-on-year decline in revenue for the first half of 2024, with total revenue of 14.332 billion yuan and a net profit of 1.599 billion yuan, down 12.32% year-on-year [1][4] - The decline in revenue is attributed to a focus on core business areas, leading to a reduction in revenue from municipal construction projects and a decrease in engineering contract income due to insufficient orders in urban rail projects [1] - Despite the revenue decline, the company has seen an increase in gross margin and net margin, with gross margin at 29.36% and net margin at 13.05%, reflecting a strategic shift towards high-quality development [1][5] - The company has experienced stable growth in its design integration and equipment manufacturing segments, with revenues of 5.978 billion yuan and 2.907 billion yuan, respectively, showing year-on-year increases of 8.54% and 17.57% [1] - New orders in the overseas market have shown significant growth, with a total of 3.549 billion yuan in new contracts, representing a 156.45% increase year-on-year [1] Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 14.332 billion yuan, a decrease of 14% year-on-year, and a net profit of 1.599 billion yuan, down 12.32% year-on-year [1][4] - The gross margin improved by 4.40 percentage points to 29.36%, while the net margin increased by 0.37 percentage points to 13.05% [1][5] Business Segments - Revenue from the rail transit control system was 13.111 billion yuan, down 2.52% year-on-year, while the equipment manufacturing and design integration segments saw revenues of 2.978 billion yuan and 5.978 billion yuan, respectively, with growth rates of 17.57% and 8.54% [1] - The engineering contracting business experienced a significant decline of 64.96%, with revenue dropping to 1.098 billion yuan [1] Order Book and Future Outlook - The total new orders signed in the first half of 2024 amounted to 21.023 billion yuan, a decrease of 33.62% year-on-year, primarily due to a drop in engineering contracting and other fields [1] - The company is expected to benefit from the recovery of national railway fixed asset investment, projected to exceed 800 billion yuan in the next two years, and the ongoing upgrade and renovation of high-speed rail lines [1]