【招银国际】Structural margin improvement trend intact.pdf

–1H23 results marginally beat; continue to implement “1+2+N” strategy

Recent sell-off overdone; Positive on investments and margin recovery in FY24-25E

Fair guidance but decent inventory and margin

FY22 net margins better than expected

Higher consumer internet revenue contribution boosted margin

Record-high FY24 NPM of 28.8% underpins ability to maintain high margins

Solid margin and attractive valuation; wait for top-line recovery

–Marginally drop in gas transmission volume and steady power generation

Core net profit in 2022 +53% YoY in line with expectation; Margin recovery in 4Q

Distressed margin with non-standardized cloud