ITG(600755) 长江证券·2024-10-04 00:37Investment Rating - The investment rating for Xiamen Guomao (600755.SH) is "Buy" and is maintained [3]. Core Views - In the first half of 2024, the company experienced a 28.2% year-on-year decline in revenue, primarily due to weakened demand in the bulk market and price drops in key operating categories. However, the company is optimizing its customer structure and actively expanding its product categories, leading to a gradual improvement in profitability. The financial expenses increased by 790 million due to exchange losses, and the net profit attributable to shareholders decreased by 35.36% year-on-year [4][5]. - Despite the revenue and profit pressures, the company's operations show a trend of stabilization on a quarter-on-quarter basis, with current valuations at historical lows and an attractive dividend yield [4][5]. Summary by Sections Revenue and Profit Performance - In H1 2024, the company achieved revenue of 195.21 billion, down 28.2% year-on-year, and a net profit of 840 million, down 46.9%. In Q2 2024, revenue was 98.33 billion, down 33.7%, and net profit was 430 million, down 49.0% [4][5]. Market Demand and Operational Strategy - The decline in revenue is attributed to weak demand in the bulk market and price drops in key categories. The operating volumes for metals and metal ores, energy chemicals, and agriculture, forestry, animal husbandry, and fishery decreased by 32.9%, 35.3%, and 8.8% respectively. Revenue from these segments fell by 27.5%, 36.0%, and 11.3% respectively. The company is enhancing its customer structure and expanding product categories, including long-term cooperative resources in iron ore, coal, crude oil, and timber [4][5]. Health Technology Business Growth - The health technology segment reported a revenue of 559 million, a year-on-year increase of 91.39%. The subsidiary, Paiter Medical, achieved a revenue of 310 million, up 33.7%, with over 45% of its revenue coming from overseas markets [4][5]. Financial Management and Future Outlook - The company’s financial expenses increased due to exchange losses, with total period expenses rising by 930 million. The net investment income decreased by 590 million year-on-year due to the previous year's transfer of equity stakes. Excluding these impacts, the net profit attributable to shareholders would have decreased by 35.36% [5]. - The company is focusing on risk management and international expansion, particularly in countries along the Belt and Road Initiative and RCEP countries. The projected net profits for 2024-2026 are 1.86 billion, 2.08 billion, and 2.21 billion respectively, with corresponding P/E ratios of 7.2, 6.4, and 6.0 [5].