2024H1 总收入同降15%：预计主因健康环境/电子烟/水冷散热业务收入同比下降、汽车电子/罗技相关业务收入维持稳定增长。分业务看，2024H1 公司智能控制部件/创新消费电子/汽车电子/健康环境业务收入分别同比-7%/-8%/+22%/-76%，占营收比重分别为37%/30%/17%/4%。1）智能控制部件产品：预计水冷散热收入同比有所下降，罗技相关业务收入预计同比增长。2）创新消费电子产品：雕刻机业务因下游需求不振，预计收入同比下降；低基数背景下，Ebike 业务收入预计同比实现较快增长；电子烟业务由于客户处于新旧产品切换期，同时核心加热模组和整机仍未大幅放量，预计收入同比下降。3）汽车电子产品：收入延续较快增长，公司明星产品电子防眩镜及长滑轨控制、冰箱控制、方向盘离手检测HOD 等新产品配置率快速提升。4）健康环境产品：因跨境电商等新兴业态发展下市场竞争有所加剧，同时受下游客户库存影响，收入同比大幅下降。Description of the event
The company achieved revenue/net profit/deducted non-net profit of 1.575/0.136/0.113 billion yuan in 2024H1, a decrease of 15%/33%/34%; of these, 2024Q2 achieved revenue/net profit/deducted non-net profit of 0.811/0.08/0.069 billion yuan, a decrease of 17%/35%/46%.
Incident comments
Total 2024H1 revenue also fell 15%: It is expected that the revenue from the healthy environment/e-smoking/water cooling business declined year-on-year, and that the automotive electronics/Logitech related business revenue will continue to grow steadily. By business, 2024H1's intelligent control components/innovative consumer electronics/automotive electronics/health environment business revenue was -7%/-8%/+22%/-76%, respectively, accounting for 37%/30%/17%/4% of revenue, respectively. 1) Intelligent control component products: Revenue from water cooling and cooling is expected to decline year on year, and revenue from Logitech related businesses is expected to increase year on year. 2) Innovative consumer electronics products: The engraving machine business is expected to see a year-on-year decline in revenue due to poor downstream demand; in the context of a low base, Ebike business revenue is expected to grow rapidly year over year; the e-cigarette business is expected to decline year-on-year due to customers in the transition period between new and old products, while core heating modules and complete machines have not been significantly expanded. 3) Automotive electronics: Revenue continues to grow rapidly, and the allocation rate of the company's star products such as electronic anti-glare and long rail control, refrigerator control, and steering wheel departure detection HOD increased rapidly. 4) Healthy environment products: Due to the development of emerging business formats such as cross-border e-commerce, market competition has intensified. At the same time, due to the impact of downstream customer inventories, revenue declined sharply over the same period last year.
Total 2024Q2 revenue also fell 17%: Revenue from the health environment/e-smoking/water-cooled radiation/engraving machine business is expected to decline year-on-year, automotive electronics revenue growth will increase month-on-month, and Logitech related business revenue will grow steadily. In the context of a low base, Q2 revenue from the Ebike business is expected to increase sharply; revenue from the automotive electronics business is expected to increase steadily, and the Q2 revenue growth rate is expected to increase month-on-month; revenue from the healthy environment, water cooling and cooling, and e-cigarette business is expected to decline year on year; Q2 revenue from the engraving machine business is expected to decline year on year. In the development period of low-cost models, mass production is expected in the second half of the year.
The year-on-year decline in gross margin was mainly due to a year-on-year decline in order revenue; a year-on-year decrease in exchange earnings led to an increase in financial expenses and a year-on-year decline in net interest rate. 2024H1's gross margin decreased by 2.1 pcst. Among them, the gross margins of intelligent control components/innovative consumer electronics/automotive electronics/healthy environmental products were +4pcts/-8pcts/+1pcts/-12pcts, respectively. The year-on-year decline in gross margins of innovative consumer electronics products and healthy environmental products is expected to be mainly due to falling orders and cost amortization due to new base construction (subsidiary Zhonghuan Technology moved into a new office building and production base). 2024Q2's gross margin was 1.9 pcts to 29.2% year on year, and the 2024q2 company's sales/management/R&D/finance expense ratio increased by 0.4/0.2/1.2/3.8 pcts, respectively. Among them, the year-on-year increase in sales/management/R&D expenses ratio was mainly due to the year-on-year decrease in revenue, and the year-on-year increase in financial expenses was mainly due to a year-on-year decrease in exchange earnings. Under the influence of the above factors, the net interest rate/deducted non-net interest rate for 2024Q2 decreased by 2.8/4.6 pcts.
There is potential for growth in the medium to long term: I am optimistic about the steady restoration of existing businesses, the gradual expansion of new projects, and progress in ongoing research projects. The company's business focuses on various race segments. Multiple tracks have shown good potential for development. As the company continues to deepen cooperation with major customers and the steady progress of new product development, it is expected to continue to contribute revenue. The engraving machine business is expected to improve with mass production revenue of low-cost models in the second half of the year; e-cigarette products have successfully achieved the supply of “precision plastic parts - core heating modules - complete machines”, and orders are expected to improve in the second half of the year; the global layout of the automotive electronics business accelerates, and the construction of an intelligent manufacturing base in Mexico is progressing steadily (it is expected to be completed and put into operation in 25 years). The company integrates global R&D resources, 2024H1 R&D investment accounts for 10% + of revenue, and the development of other new products and new businesses continues to advance. The company is expected to achieve net profit of 0.422/0.486/0.574 billion yuan in 2024-2026, corresponding to PE 20/17/15X.
Risk warning
1. Risk of exchange rate fluctuations; 2. Risk of falling product gross margin.
