2024 年上半年，公司内销收入6.8 亿元，同比-10.1%，收入占比63%； 出口收入4.0 亿元， 同比+24.9%， 收入占比36.7%。公司实施以“中国威海为核心，越南、墨西哥基地为两翼”的战略布局，有效降低生产成本，规避地缘政治风险。The company released its 2024 interim report
In the first half of 2024, the company achieved revenue of 1.08 billion yuan, +0.2% year-on-year, and realized net profit of 0.14 billion yuan, or +101.4% year-on-year. Looking at the second quarter alone, the company achieved revenue of 0.59 billion yuan, -5.6% year-on-year, and +20.9% month-on-month; realized net profit of 0.09 billion yuan to mother, +54.3% year-on-year, and +46.3% month-on-month.
Export sales resumed growth, and overseas bases gradually put into operation
In the first half of 2024, the company's domestic sales revenue was 0.68 billion yuan, -10.1% YoY, accounting for 63% of revenue; export revenue was 0.4 billion yuan, +24.9% YoY, accounting for 36.7% of revenue. The company implemented a strategic layout with “Weihai, China as the core, with Vietnam and Mexico bases as two wings” to effectively reduce production costs and avoid geopolitical risks.
In the first half of 2024, the Vietnamese subsidiary achieved sales revenue of 52.05 million yuan, +85.1% over the same period, increasing the number of products sold to 197; the Mexican subsidiary is under active construction.
Focusing on profitable businesses, gross margin increased significantly year-on-year
In the first half of 2024, the company's comprehensive gross margin was 24.0%, +6.5pp year on year; in the 2nd quarter, the company's comprehensive gross margin was 24.5%, +8.5pp year on year, +1.1 pp. The company's gross margin increased significantly year-on-year, mainly due to the company's main profitable business — power tool accessories and battery pack business. According to the company's 2024 mid-year report, ① power tool accessories revenue +33.7% YoY, gross margin was 21.2%, +2.4pp; ② Battery pack and charger revenue +48.8% YoY, gross margin was 35.7%, +8.4pp; ③ High-end equipment revenue +14.8% YoY, gross margin was 13.0%, -9.6pp; ④ New energy vehicle power exchange station revenue YoY -75.4%, Gross margin was 13.3%, +4.7pp.
Expense rates increased during the period; net interest rates improved significantly year-on-year
In the first half of 2024, the company's fee rate for the period was 10.4%, +0.8pp; the fee rate for the second quarter period was 10.3%, +6.7pp, and Q2's significant year-on-year increase was mainly due to a sharp year-on-year decrease in exchange earnings; in the first half of 2024, the company's net interest rate was 13.5%, +6.8pp, and Q2 was 14.5%, +5.3pp, and +2.2pp month-on-month. The increase in the company's net margin was mainly due to an increase in gross margin.
Investment advice
We expect the company's 2024-2026 revenue to be RMB 22.2, 25.3, and RMB 2.89 billion, respectively; net profit to mother for 2024-2026 will be RMB 2.7, 3.1, and 370 million yuan, respectively, +61%, +17% and +16%; EPS in 2024-2026 will be 0.60, 0.70 and 0.82 yuan, respectively; the 2024/8/21 stock price of 7.84 yuan will correspond to PE 13, 11 and 10 times, covered for the first time.” “Gain” rating.
Risk warning
The risk of macroeconomic fluctuations, the risk of exports falling short of expectations, the risk of raw material price fluctuations, the risk of industry competition increasing the risk, and the risk that the company will receive a warning letter.