2024 年上半年业绩表现稳健，MILWAUKEE 业务表现优秀：2024年上半年公司实现营业额73.1 亿美元，同比+6.3%，归母净利润5.5亿美元，同比+15.7%，毛利率39.9%，较去年同期+0.67pct，净利率7.5%，较去年同期+0.6pct。收入拆分来看，1）分业务：电动工具+6.73%，MILWAUKEE 销售额期内+11.2%(按当地货币计算)，表现优秀，RYOBI 销售额同比呈中单位数增长，亦跑赢市场。地板护理及清洁同比-0.4%；2）分地区：北美同比+5.69%，欧洲同比+8.64%，其他地区同比+6.95%。公司2024 年上半年业绩稳健，Milwaukee 品牌在电池技术、实用性及高功率方面进一步拓展，实现了双位数增长。目前美国三十年期抵押贷款固定利率仍处高位，高利率环境对房产交易人群仍有制约影响，我们看好下半年公司受益降息及美国地产链需求回暖，订单具有较强确定性。Incidents:
Chuangke Industrial announced on August 6, 2024: In the first half of 2024, the company achieved a turnover of 7.31 billion US dollars, +6.3% year-on-year, net profit of 0.55 billion US dollars, +15.7% year-on-year, gross profit margin of 39.9%, +0.67pct compared to the same period last year, +0.6pct compared to the same period last year, diluted EPS of 30.12 cents, and +15.8% year-on-year. The company plans to pay an interim dividend of HK108 cents per share.
Investment highlights:
The performance in the first half of 2024 was steady, and the MILWAUKEE business performance was excellent: in the first half of 2024, the company achieved turnover of 7.31 billion US dollars, +6.3% year over year, net profit of 0.55 billion US dollars, +15.7% year-on-year, gross profit margin of 39.9%, +0.67 pct compared to the same period last year, net profit margin of 7.5%, and +0.6 pct compared to the same period last year. In terms of revenue split, 1) business segment: power tools +6.73%, MILWAUKEE sales +11.2% during the sales period (in local currency). The performance was excellent. RYOBI's sales increased by medium units year over year, and also outperformed the market. Floor care and cleaning -0.4% YoY; 2) By region: North America +5.69% YoY, Europe +8.64% YoY, and other regions +6.95% YoY. The company performed well in the first half of 2024, and the Milwaukee brand further expanded in battery technology, practicality, and high power, achieving double-digit growth. Currently, the fixed interest rate for US 30-year mortgages is still high, and the high interest rate environment still has a restrictive impact on real estate traders. We are optimistic that in the second half of the year, companies will benefit from interest rate cuts and demand in the US real estate chain will pick up, and orders are highly certain.
The overall operation was steady, and the number of inventory turnover days dropped significantly. In the first half of 2024, the company's total operating expenses accounted for 31.5%. Compared with +0.3 pct in the same period last year, product design and development expenses accounted for 4.1%, compared to +0.6 pct in the same period last year, net interest expenses accounted for 0.4%, and -0.3 pct compared to the same period last year. The actual tax rate was 7.3%. Compared with +0.4 pct in the same period last year, free cash flow was 0.508 billion US dollars, and the debt ratio improved to 9.2%. Capital expenditure of 0.1 billion USD, -52.3% YoY. As of mid-2024, the company's inventory was 4.027 billion US dollars, -12.1% year-on-year, and the number of inventory turnover days -24 to 104 days year-on-year, a significant improvement. Raw material inventory turnover was -3 days to 19 days year on year, manufactured goods inventory turnover was 20 to 81 days year over year, accounts receivable turnover was +6 days to 60 days year on year, and accounts payable turnover days were -3 days to 96 days year on year. Overall operation was steady.
Continue to develop new products and technologies to stabilize the leading position of the brand. The company promotes efficient and innovative products to increase profits. The MILWAUKEE brand recently launched the MILWAUKEE M18 FUEL brushless 7-1/4 inch rechargeable circular saw machine, which is the most powerful and fastest cutting speed in the industry, improving the work efficiency of end users. At the same time, we have invested in excellent teams and new product development processes in the three categories of MILWAUKEEPACKOUT MODULAR storage systems, electrical hand tools, and personal protective equipment (PPE) to create new growth opportunities.
RYOBI is expanding its product focus beyond the traditional DIY category. In the floor care and cleaning business, new products with both innovative and ergonomic features have been launched to promote the shift of cleaning products to rechargeable forms, and expand the product range to improve profitability.
Profit forecast and investment rating: Based on the impact of the external economic environment, we adjusted the company's profit forecast. The company's revenue for 2024-2026 is 146.2, 160.7, and 17.67 billion US dollars, +6.5%, 9.9%, and 10.0% year-on-year; net profit to mother is 1.14, 1.33, and 1.53 billion US dollars, +16.9%, and 14.6% year-on-year. Corresponding to the August 7 closing price, PE was 20, 17, and 15X. We are optimistic that the company's brands will further gain more consumer recognition under category expansion and technology upgrades, achieve impressive revenue and performance growth, and maintain a “buy” rating.
Risk warning: Technology upgrade falls short of expected risk; product market response falls short of expected risk; risk of developing new categories falling short of expected risk; risk of insufficient recovery in downward economic demand; risk of increased market competition and deterioration of the competitive landscape; other risks, etc.
