GONGNIU(603195) 国海证券·2024-09-02 17:00Investment Rating - The investment rating for the company is "Buy" (maintained) as of September 2, 2024 [1][7]. Core Insights - The company demonstrated resilience in its leading position with continuous improvement in operational quality, as reflected in its performance metrics [1][4]. - The company is transitioning from providing products to offering better scene solutions, with a focus on innovation in smart home products [2][4]. - The company has established a comprehensive competitive advantage through technology, channels, supply chain, and brand [4][5]. Financial Performance Summary - For H1 2024, the company achieved revenue of 8.386 billion yuan, a year-on-year increase of 10.45%, and a net profit attributable to shareholders of 2.239 billion yuan, up 22.88% [3][5]. - The company's gross margin for H1 2024 was 42.94%, an increase of 2.43 percentage points year-on-year, while the net profit margin was 26.68%, up 2.70 percentage points [5][6]. - The company’s revenue from the smart electrical lighting business reached 4.211 billion yuan, growing by 11.69% year-on-year, while the new energy business revenue surged by 289 million yuan, a remarkable increase of 120.22% [2][3]. Business Segment Performance - The electrical connection business generated revenue of 3.870 billion yuan in H1 2024, reflecting a growth of 5.23% year-on-year [4][5]. - The company has developed over 12,000 decoration channel points for its smart lighting products and has initiated a comprehensive customer acquisition system [2][4]. - The company is actively expanding its C-end channels in the new energy sector, having developed over 22,000 terminal points and 2,200 operator clients [2][4]. Future Projections - The company is projected to achieve revenues of 17.885 billion yuan, 20.284 billion yuan, and 22.965 billion yuan for the years 2024, 2025, and 2026, respectively [6][7]. - The net profit attributable to shareholders is expected to be 4.384 billion yuan, 5.002 billion yuan, and 5.690 billion yuan for the same years [6][7]. - The company maintains a strong return on equity (ROE) of 27% for 2024, with a projected PE ratio of 19x [6][7].