汽车领域多元化拓展，电动工具与头部客户紧密合作。1H24，公司汽车类精密金属零部件收入1.04 亿元(YoY +28.07%)，在新客户及新项目业务上实现了多元化拓展，安全气囊精密机加工件、活塞、气缸导管等定点产品已开始批量生产。1H24 电动工具精密金属零部件收入4911.64 万元(YoY +12.45%)，公司与MAKITA、Stanley Black&Decker、BOSCH、东成等电动工具头部制造商保持长期合作，拥有稳定的市场份额。The consumer electronics business has picked up significantly, and the King Kong wire bus business is under pressure in the short term. 1H24 achieved revenue of 0.553 billion yuan (YoY +37.93%), net profit attributable to mother of 45.8035 million yuan (YoY +90.29%), after deducting net profit of 35.0958 million yuan (YoY +148.98%). Corresponding to 2Q24, we achieved revenue of 0.307 billion yuan (YoY +25.93%, QoQ +24.89%) and net profit of 0.019 billion yuan (YoY +11.44%, QoQ -31.11%).
In terms of profitability, the company achieved a gross profit margin of 27.10% (YoY +3.85pct, QoQ-3.61pct) in 2Q24. With the significant recovery in the consumer electronics business, the company's profitability recovered year-on-year, but the pressure on the Diamond Wire bus business since the second quarter affected the company's overall profit.
The consumer electronics industry has clearly recovered, and new material models have been successfully introduced. 1H24, the company's 3C precision metal parts revenue is 0.352 billion yuan (YoY +71.04%). On the one hand, the overall recovery of the downstream consumer electronics industry is obvious, and market demand is steadily increasing. On the other hand, the company's cooperation with major customers continues to deepen. Previously targeted new products and new material models have also been successfully introduced in major customers, and the market demand for newly imported products is good. Furthermore, the company continues to obtain more new material numbers, which is expected to support the company's steady growth in the medium term.
The automotive sector is diversified and expanded, and power tools cooperate closely with leading customers. 1H24, the company's automotive precision metal parts revenue was 0.104 billion yuan (YoY +28.07%), and diversified expansion was achieved in new customers and new project business. Mass production of fixed-point products such as airbag precision machined parts, pistons, and cylinder guides has begun. 1H24 electric tool precision metal parts revenue is 49.1164 million yuan (YoY +12.45%). The company maintains long-term cooperation with leading power tool manufacturers such as MAKITA, Stanley Black & Decker, BOSCH, and Dongcheng, and has a stable market share.
The diamond wire bus business is under pressure, and tungsten wire busbars have been shipped in small quantities. 1H24, the company's photovoltaic diamond bus revenue is 35.1171 million yuan (YoY -32.71%), mainly due to the current production capacity of the photovoltaic industry, insufficient operating rates in all parts of the industrial chain, and the low operating rate of the company's diamond wire busbars. However, the company continued to promote vertical integration of the industrial chain, successfully achieved independent production of brass wire, and further extended to upstream alloy wires, giving the company a clear advantage in terms of cost. Furthermore, through advanced cold drawing technology, the company can produce tungsten wire with a finer diameter and higher strength, and solve problems such as low breaking force and rough surface. Currently, the company's tungsten wire busbars have been shipped in small quantities. As the industry picks up, the company's market share is expected to increase dramatically.
Investment advice: Lower the profit forecast and maintain the “better than the market” rating Since the photovoltaic industry is still in the inventory stage, we lowered the company's profit forecast. The company's net profit forecast is expected to increase 10.0/37.1/ 28.0% year-on-year to 0.1/0.13/0.17 billion yuan (the value was 0.16/0.22 billion yuan 24-25 years ago), corresponding to PE 22/16/12 times. We are optimistic about the company's technological leadership in the field of wire drawing, which is expected to usher in explosive growth when the industry recovers. Maintain an “better than the market” rating.
Risk warning: Product expansion falls short of expectations, customer expansion falls short of expectations, downstream demand falls short of expectations.
