Jingu Wealth News | Guosheng Securities issued a research report stating that Hongxin Jianfa (09930) achieved revenue of 4.87 billion yuan in 2024 H1, a year-on-year increase of 16%; achieved net profit of 0.27 billion yuan, a year-on-year increase of 13%, the growth of revenue and profit is steady and in line with expectations.
The bank stated that the company achieved revenue of 1.9/1.95/1.03 billion yuan for rental and leasing services, engineering and technology services, asset management and other businesses respectively, with changes of -24%/+71%/+84% year-on-year. Operating income from leasing services declined due to weak domestic demand and downward pressure on rental prices for equipment such as aerial vehicles and scaffolding. In this situation, the company actively adjusted its global strategy, tilting towards engineering and technology services and asset management, and promoted the rapid growth of non-asset-driven business income (which accounted for over 60% of 2024 H1 revenue, YoY+21pct), driving steady income growth for the company.
The bank predicts that the company's net income attributable to shareholders will be 1.12/1.28/1.44 billion RMB in 2024-2026, with year-on-year increases of 16%/15%/12%, corresponding EPS of 0.35/0.40/0.45 yuan/share, and corresponding PEs of 3.9/3.4/3.0 times. The current stock price corresponds to a low valuation due to the significant impact of the company's exit from the Hong Kong stock through-train this year. If it returns to the Hong Kong stock through-train in the future, the valuation recovery space is significant, and the bank maintains a "buy" rating.