Key points of investment:
Investment advice: The company's expansion of the NEV component business opens a second growth curve, which is expected to lead to a high increase in performance. Maintain the 2024-2026 EPS of 0.63/0.93/1.11 yuan, maintain the company's target price of 16.44 yuan, and maintain the shareholding increase rating.
The performance was in line with expectations. The company released a semi-annual performance forecast. The net profit for the first half of 2024 is expected to be 70 to 90 million yuan/106.44%-1402.28% year-on-year increase, after deducting non-net profit of 0.65 to 85 million yuan/183.56%-270.81% year-on-year increase. The company's performance increased year-on-year in the first half of 2024, mainly due to: 1) strong demand for the company's new energy precision connectors and other products; sales revenue grew rapidly after mass production; 2) the company's operating efficiency continued to improve, and the benefits of new industrial intelligent manufacturing technology reforms were gradually released, reducing costs and increasing efficiency to improve main business performance; 3) the company's products have not yet been released in 2023, and the base is low.
The NEV parts business is progressing smoothly, helping to expand market space. Along with the three-electric integration, high-voltage, and lightweight development of new energy vehicles, as well as the collaborative development of autonomous driving and vehicle-road cloud technologies, the market demand for precision embedded components with high technical requirements is growing rapidly. The company's new energy precision connectors and other products are leading in technology. As the project progresses on target, demand for product orders is strong.
It takes two steps, R&D and technical reform, and is well recognized by core customers. The company has accumulated R&D technology in the fields of ultra-precision metal and plastic molding, polymer engineering materials, etc., and has entered the NEV component business. The German subsidiary has an integrated overseas R&D, production and marketing platform to provide local support for major international customers. The company's products such as power battery busbar/structural parts, drive motor connectors, electronic control system inverters/sensor components, and automotive lightweight parts are widely recognized by overseas core customers, and can provide fast response local supporting services for international customers. At the same time, it has been designated for new projects for platform products in overseas markets. At the same time, it has been targeted by first-tier car companies, Well-known enterprise projects are targeted. The company's new industrial intelligent manufacturing technology has made breakthroughs to reduce costs and increase efficiency.
Risk warning: The penetration rate of new energy vehicles falls short of expectations, and product expansion falls short of expectations.