盈利能力持续改善、数字化降本增效成果显著公司24H1 综合毛利率24.56%，同比提升5.11pct，其中能源业务毛利率24.03%，同比提升6.08pct，照明业务毛利率25.90%，同比提升0.74pct，其他业务毛利率26.15%，同比提升8.80pct，主要受益于数字化生产设备投入加速，降本增效促进毛利率提升。Key points of investment:
Incident: The company released its 2024 semi-annual report. The company's 2024H1 revenue was 2.053 billion yuan, up 30.44% year on year, net profit to mother was 0.176 billion yuan, up 95.38% year on year; 2024Q2 achieved revenue of 1.279 billion yuan in a single quarter, up 36.86% year on year, and net profit to mother of 0.118 billion yuan, up 65.63% year on year, biased from the performance forecast limit.
The transformer business is growing unabated, and demand in the lighting and incubation business is picking up 1) Energy products: 2024H1 achieved revenue of 1.485 billion yuan, an increase of 28.44% over the previous year. The growth momentum is strong, mainly due to the rapid growth in photovoltaic transformers and distribution transformers due to high demand for overseas transformers. 2) Lighting business: 2024H1 achieved revenue of 0.453 billion yuan, a year-on-year increase of 34.81%. The growth rate exceeded expectations, mainly due to a recovery in overseas market demand for lighting LED drive power supplies. 3) Other business: 2024H1 achieved revenue of 0.116 billion yuan, a year-on-year increase of 40.61%. The high growth rate mainly benefited from the rapid increase in automotive boost inductors.
The company's 24H1 comprehensive gross profit margin was 24.56%, with significant digital cost reduction and efficiency results, with a year-on-year increase of 5.11pct. Among them, the gross profit margin of the energy business was 24.03%, up 6.08pct year-on-year, the gross profit margin of the lighting business increased by 25.90%, 0.74pct year-on-year, and the gross profit margin of other businesses was 26.15%, up 8.80pct year-on-year, mainly benefiting from accelerated investment in digital production equipment, cost reduction and efficiency to increase gross margin.
Accelerating production capacity implementation and deepening overseas layout
During the reporting period, Igor's Anhui plant, Thailand plant, and the second phase of the Malaysian project were completed and put into operation. 1) Domestic production capacity: the company now has a total production capacity of 1-1.2 billion step-up transformers at the Jiangxi base and 1.6 billion step-up conversion and high-frequency inductor production capacity at the Anhui base; 2) Overseas production capacity: the Thai plant and the Malaysian plant have already been put into operation. At the same time, production capacity of distribution transformers in Dallas, USA is expected to be put into operation in 2024Q4. Mexico's step-up transformer production capacity is expected to be put into operation at 2025H2, helping increase the direct export ratio.
Profit forecasting and investment advice
Based on the continued increase in the company's profitability and continued demand in the overseas transformer market, we raised our performance expectations. We expect the company's net profit for 2024-2026 to be 0.385/0.494/0.598 billion yuan (previous value 0.37/0.479/0.59 billion yuan), an increase of 84%/28%/21% year over year. The PE valuation corresponding to the current stock price is 0.98/1.26/1.53 yuan per share, respectively. As a leading transformer company, the company is expected to enjoy a boom cycle for global power equipment. At the same time, the recovery in overseas market demand for the lighting business and rapid growth in incubation business are expected to support the company's performance growth and maintain a “buy” rating.
Risk warning
The growth rate of global investment in new energy installations and power equipment fell short of expectations, the recovery in overseas demand in the lighting business fell short of expectations, the share of core customers declined, and overseas trade policy risks.
