SIEYUAN(002028) 长江证券·2024-09-10 02:10Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company reported a robust revenue growth of 16.27% year-on-year, achieving a total revenue of 6.166 billion yuan in the first half of 2024 [5]. - Net profit attributable to shareholders increased by 26.64% year-on-year, reaching 0.887 billion yuan, while the net profit excluding non-recurring items grew by 23.48% to 0.841 billion yuan [5]. - The company achieved a significant milestone with a positive operating cash flow of 0.11 billion yuan for the first half of the year, marking the first time since its listing that it recorded a positive cash flow for a half-year period [6]. Summary by Sections Financial Performance - In Q2 alone, the company generated revenue of 3.509 billion yuan, reflecting a year-on-year growth of 12.05%, with net profit of 0.524 billion yuan, up 8.66% [5]. - The gross margin for the first half of the year was 31.75%, an increase of 2.69 percentage points year-on-year, with Q2 gross margin at 32.54% [5][6]. - The company’s overseas revenue grew by 40.04% year-on-year, contributing to 24.56% of total revenue, while domestic revenue increased by 10.18% [5]. Product and Regional Performance - Revenue from coil products surged by 50.48% year-on-year, primarily due to increased transformer deliveries, while switch products grew by 9.78% [5]. - The company’s performance in the overseas market was highlighted as a key growth driver, with a notable increase in both revenue and gross margin from international operations [6]. Cost and Expenses - The company’s total expense ratio reached 14.8%, up 1.74 percentage points year-on-year, driven by increases in sales and financial expense ratios [5]. - Financial expenses were notably impacted by a 55 million yuan increase in exchange losses, despite a 10 million yuan rise in interest income [5]. Future Outlook - The report projects net profits of 2 billion yuan and 2.5 billion yuan for 2024 and 2025, respectively, with corresponding valuations of 25 and 21 times [6].