扩展SMC 技术平台，布局多条MIM 生产线。SMC：公司完成1000 平方米的轴向磁通电机生产车间基建建设，并组建1 条轴向磁通电机装配生产线。2024H1 achieved operating income of 2.353 billion yuan, +33.50% year over year; net profit to mother 0.19 billion yuan, +431.53% year over year; net profit after deducting non-return to mother 0.178 billion yuan, +6821.68% year over year. Q2 revenue was 1.251 billion yuan, +30.22% YoY, +13.50% month-on-month, net profit to mother 0.108 billion yuan, +561.92% YoY, +33.57%.
24H1 revenue and net profit increased month-on-month, and Q2 results hit a record high in a single quarter. By business, 24H1's two main businesses, P&S and MIM, hit record highs, respectively, of 1.11 billion yuan/0.767 billion yuan, or +26.69%/+101.11%. Although SMC's revenue was -6.52%, it has rebounded steadily since Q1 and reached 0.276 billion yuan in a single quarter, a record high; the three businesses accounted for 47.18%, 32.61% and 19.40% respectively. Downstream: In the downstream P&S business, automotive parts and home appliance parts accounted for 75.72% and 20.27% respectively; in the downstream SMC business, the photovoltaic sector and the NEV sector accounted for 35.94% and 16.46% respectively. The global NEV industry, photovoltaic industry, and folding machines all maintained a high growth trend, and the company's three business segments all showed considerable potential for growth.
Overall gross margin maintained an upward trend. The overall gross margin of the 24H1 company was 24.44%, +5.7pct year-on-year. The gross margin of P&S/SMC/MIM was 25.56%/21.77%/24.3%, respectively, +6.08pct./+10.88pct./+2.49pct.
Expand the SMC technology platform and lay out multiple MIM production lines. SMC: The company completed the infrastructure construction of a 1000-square-meter axial flux motor production workshop and set up an axial flux motor assembly line.
MIM: Following the pace of new product launches from major customers, as of 2024H1, it has been equipped with 5 folding machine hinge module production lines, and the development model from folding machine MIM parts to MIM parts+modules has been implemented.
Technological innovation broadens product application fields. The company follows the development trend of computing power construction such as AI and promotes R&D and market development of new integrated metal soft magnetic inductors and other technologies. The company has also successfully developed a total of two high speed connector housing MIM parts. As of 2024H1, one material number has been verified and delivered in batches. The product is indirectly supplied to Nvidia's next-generation GB200NVL72 server; the other has completed domestic verification, and samples have been submitted abroad for final verification. On July 9, 2024, Ningbo Dongmu Guangtai signed a “Capital Increase Agreement” to hold 5% of a company's shares in the form of a capital increase to enable the company to develop 3D printing and metal injection molding technology to obtain titanium alloy powder raw materials.
Maintain a “Highly Recommended” investment rating. The company is expected to achieve net profit of 0.417, 0.533, and 0.664 billion yuan in 2024-2026, corresponding to price-earnings ratios of 21, 16.5, and 13.2 times, which is highly recommended.
Risk warning: downstream demand falls short of expectations, penetration of new materials falls short of expectations, and fluctuations in the secondary market.
