Depreciation dragged down 24Q2 net profit and continued expansion of overseas business

Pilot Intelligence released its semi-annual report, with 24H1 revenue of 5.752 billion yuan (yoy -18.82%), net profit of 0.459 billion yuan (yoy -61.74%), deducting non-net profit of 0.448 billion yuan (yoy -61.68%). Among them, Q2 revenue was 2.441 billion yuan (yoy -35.96%, qoq -26.26%), and net profit to mother was 0.105 billion yuan (yoy -116.52%, qoq -118.64%). Considering the increased profit pressure on domestic downstream customers and the increased risk of the company's impairment, we lowered our profit forecast. The company's EPS for 24-26 is 1.83, 2.21, and 2.79 yuan, respectively (previous values of 2.26, 2.88, and 3.86 yuan). Comparatively, the company Wind agreed to expect an average PE value of 9 times. Considering that the company has an advantage in the overall line business, there should be a certain premium. The company should be given 10 times PE in 24 years, with a target price of 18.30 yuan (previous value of 29.38 yuan) to maintain a “purchase”.

The revenue share of intelligent logistics systems increased, leading to pressure on profitability. 24H1's gross profit margin was 36.30%, -3.80pct year on year; 24Q2 single-quarter gross profit margin was 35.66%, -3.27pct year on year. By business, 2024H1 lithium battery equipment business revenue was 3.905 billion yuan, year-on-year -27.10%, gross profit margin -1.65pct, mainly due to a slowdown in domestic market demand growth and delays in the pace of equipment inspection; intelligent logistics business revenue was 1.297 billion yuan, +40.41% year-on-year, accounting for an increase of 9.51pct to 22.55%, gross profit margin 19.53%, year-on-year -7.85pct; PV business revenue 0.402 billion yuan, +41.53% YoY, accounting for 7%, gross profit margin 35.33%. 2024H1's overseas business revenue was 1.095 billion yuan, +159.56% year over year, accounting for an increase of 19.03%, and the gross margin of overseas business increased to 39.47%.

24H1 increased the cost ratio of 24H1 due to revenue growth pressure. 24H1's period expenses were 1.476 billion yuan, which was relatively stable; the company period expense ratio was 25.66%, +5.18pct year on year; among them, the sales expense ratio was 2.64%, +0.64pct year on year; management expense ratio was 9.53%, +3.13pct year on year; R&D expense ratio was 14.43%, +2.52 pct year on year; financial expense ratio -0.95%, year-on-year -1.11pct This is mainly due to changes in foreign currency exchange rates.

It also received a new order from the customer's European base to help global customers achieve electrification transformation. According to the company's official website, the 2024 pilot laminating equipment order welcomed a new breakthrough overseas. Efficient cutting equipment independently developed by Pilot Intelligence officially began to be delivered to the world's top car company customers, and helped the customer to launch their first battery cell 3 months after the equipment was delivered to the site, which promoted the smooth progress of the customer's overseas projects. In 2024, Pioneer Intelligence once again received a new European base equipment order from customers, becoming the world's largest and most comprehensive equipment and system service provider for the world's top car companies. In the future, Pioneer Intelligence will further deepen the global high-end lamination market, provide efficient and intelligent high-end lamination equipment solutions, help global customers achieve electrification transformation, and promote global green and sustainable innovation and development.

Risk warning: International macroeconomic and international trade policy risks; risk of exchange rate fluctuations; increased risk of industry competition; risk of customer expansion or overseas demand falling short of expectations; risk of slowing equipment acceptance.