CRSC(688009) 光大证券·2024-09-03 02:39Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [5]. Core Views - The company's profitability is continuously improving and is expected to benefit from the upgrade and replacement of rail transit equipment [2][4]. - Despite a decline in revenue, the company is focusing on high-quality development and optimizing its revenue structure [3][4]. - The overseas market is showing growth, with significant new contracts signed, particularly in the overseas sector [4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 14.25 billion yuan, a year-on-year decrease of 14.3%, and a net profit attributable to shareholders of 1.6 billion yuan, down 12.3% year-on-year [2]. - The gross margin improved to 29.4%, an increase of 4.4 percentage points year-on-year, while the net margin rose to 13.0%, up 0.4 percentage points [2]. Business Segments - Revenue from the railway, urban rail, and engineering contracting segments was 9.04 billion, 3.47 billion, and 1.1 billion yuan, respectively, with year-on-year changes of +1.9%, -13.1%, and -65.0% [3]. - The high-margin segments of equipment manufacturing and design integration saw revenues of 2.91 billion and 5.98 billion yuan, growing 17.6% and 8.5% year-on-year [3]. Overseas Market - The company’s overseas business generated 610 million yuan in revenue, a year-on-year increase of 3.2% [3]. - New contracts in the overseas market totaled 3.55 billion yuan, a significant increase of 156.5% year-on-year, contributing to a total backlog of 122.39 billion yuan as of mid-2024 [4]. Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been adjusted downwards by 10.7%, 7.5%, and 2.7% to 3.5 billion, 4.01 billion, and 4.65 billion yuan, respectively [5]. - The expected EPS for 2024-2026 is projected to be 0.33, 0.38, and 0.44 yuan [5].