Incident: The company released its 2024 semi-annual report. 2024H1 achieved revenue of 0.97 billion yuan, +14.06%; net profit to mother of 0.038 billion yuan, +101.60%; of these, 24Q2 achieved revenue of 0.481 billion yuan, +4.04% year over year; net profit to mother of 0.021 billion yuan, +65.19% year over month.
Comment:
Performance has improved markedly, and the chassis parts business base is stable. On the profit side, 24Q2 continued the improvement trend of 24Q1, achieving high year-on-year growth and significant improvements, mainly due to revenue scale effects and internal cost reduction optimization. As the company's dominant chassis parts business remains steady, and the sales scale of new products in the superimposed chassis business (such as Bosch IPB-Flange, ZF CDC valve parts, etc.) continues to expand, the chassis parts business is expected to maintain a steady and upward trend.
The lightweight growth rate of aluminum alloy is remarkable, and production capacity construction is progressing in an orderly manner. The company's aluminum alloy lightweight business mainly includes products such as valve terminals, control arms, and Yoke components. The main customers are well-known companies such as BYD and ZF. 2024H1 The business achieved revenue of 0.07 billion yuan, a gross profit margin of 8.22%, and a year-on-year increase in revenue. As production capacity construction of the Yancheng production base forging line project progresses in an orderly manner, the revenue and profitability of the aluminum alloy lightweight business is expected to continue to increase.
The screw business is expanding smoothly, and a screw production line for humanoid robots has already been launched. In order to meet customer sample production needs, the company focused on building a humanoid robot screw production line, covering production process equipment such as rough turning, hard turning, heat treatment and hardening, external grinding, thread grinding, inspection, etc., and achieved independent production throughout the process, laying a solid foundation for the humanoid robot screw business. In addition, screw components for rear-wheel steering systems are also being developed steadily, and samples have been sent to customers. We believe that as the industrialization of humanoid robots continues to advance, the screw business is expected to contribute greatly to the company's performance flexibility.
Investment advice: We believe that the profitability of the company's original business is improving. Considering the rapid development of the aluminum alloy lightweight business and continued breakthroughs in the humanoid robot screw business, we expect the company's net profit to be 0.079/0.118/0.179 billion yuan in 2024-2026, and the net profit CAGR to mother can reach 50.53%. We believe that the company has a lot of room for growth and maintains a “buy” rating.
Risk warning: Automobile sales fall short of expectations; industrialization of humanoid robots falls short of expectations; risk of fluctuations in raw material prices.