BOE VARITRONIX(710.HK):1H24 REVENUE BACK ON GROWTH TRACK; FOCUS ON BETTER PROFITABILITY AND OVERSEAS EXPANSION IN 2H24E
BOE VARITRONIX(710.HK):1H24 REVENUE BACK ON GROWTH TRACK; FOCUS ON BETTER PROFITABILITY AND OVERSEAS EXPANSION IN 2H24E
Revenue growth back on track; Reiterate BUY. We raised FY24-26E EPS by 2-9% to reflect 1H24 results, 2H profitability improvement and rapid overseas expansion. Our new TP of HK$10.48 is based on same 15x FY25E P/E. Trading at 7.7x/6.1x FY24/25E P/E (1-sd below hist. avg), the stock is attractive in our view.BOEVx's 1H24 revenue growth of 18% YoY was ahead of market expectations, while net profit decline of 15% YoY was largely in-line, mainly dragged by 1) higher expense for Chengdu plant and overseas expansion, 2) subcontracting fee for urgent orders, and 3) less government grants and FX gains. Despite higher expense, we are encouraged by improving GPM and breakthroughs in overseas markets (US/Japan +25%/13% YoY). Looking into 2H24E/2025, we are positive on Chengdu plant's UTR/yield ramp-up, high-end product growth and accelerated overseas strategy (Vietnam plant, Japan/Korea R&D center). We raised FY24-26E EPS by 2-9% to reflect 1H24 results and stronger overseas outlook. Our new TP of HK$10.48 is based on same 15x FY25E P/E. Trading at 7.7x/6.1x FY24/ 25E P/E, the stock is attractive in our view. Reiterate BUY.
BOEVx的1H24營業收入同比增長18%，超出市場預期，而淨利潤同比下降15%，基本符合預期，主要受以下因素影響：1）成都工廠和海外擴張支出增加；2）緊急訂單的分包費用；3）政府補助和外匯收益減少。儘管支出增加，但我們對GPm的改善和海外市場（美國/日本同比增長25%/13%）的突破感到鼓舞。展望2H24E/2025，我們對成都工廠的UTR/yield提升、高端產品增長和加速的海外策略（越南工廠、日本/韓國研發中心）持積極態度。我們將FY24-26E每股收益上調2-9%，以反映1H24的業績和更強的海外前景。我們的目標價爲HK$10.48，基於相同的15倍FY25E市盈率。按照7.7倍/6.1倍FY24/25E市盈率交易，我們認爲該股具有吸引力。鞏固買入觀點。
1H24 strong revenue recovery dragged by higher expenses. BOEV reported strong revenue growth of 18% YoY in 1H24 (vs 0% in 2023), mainly driven by automotive high-end products, system products ramp-up and Chengdu's capacity expansion. By region, Chinese sales climbed 26% YoY (76% mix) thanks to favourable policy and new NEV model launches. For overseas, both revenue and ASP maintained double-digit YoY growth in 1H24. America/Japan sales grew 25%/13% YoY thanks to project wins and new offices in the US/Japan, while Europe/Korea declined 13%/10% YoY on soft demand. BOEVx posted GPM expansion of 2.3ppts YoY to 11.4% for the first time due to Chengdu plant in full operation with better yield.
1H24高額支出拖累了強勁的營收復蘇。BOEV在1H24實現了18%的營業收入同比增長（2023年爲0%），主要受汽車高端產品、系統產品放大和成都產能擴張推動。按地區劃分，中國銷售同比增長26%（佔比76%），得益於政策利好和新能源汽車模型的推出。海外市場的營收和ASP在1H24均保持了兩位數同比增長。美洲/日本銷售同比增長25%/13%，得益於項目贏得和在美國/日本的新辦公室，而歐洲/韓國銷售同比下降13%/10%，受低迷需求影響。BOEVx的GPm同比擴展了2.3個百分點，達到11.4%，這是由於成都工廠全面運營並具有更好的產量所致，首次實現了GPm的擴張。
2H24/2025 outlook: improving profitability, high-end/system products, overseas expansion and Vietnam plant ramp-up. Looking ahead, mgmt. is positive on overseas markets and opportunities in larger-display and multi-screen display and high-end products (Oxide/LTPs/OLED). Other key guidance includes: 1) overseas market with double-digit growth in FY24E, and target 50% of sales mix in FY27E (vs. 30% in 1H24); 2) system biz to grow 100%+ in 2024; 3) improving NPM in 2H24 vs 1H24 given operational efficiency and Chengdu's plant ramp-up; 4) Japan/Korea order wins to drive growth in 2025-26E; 5) Vietnam plant Phase I under construction, which will contribute to 10-20% additional sales after completion.
2H24/2025前景：利潤改善，高端/系統產品，海外擴張和越南工廠提速。展望未來，管理層對海外市場和更大屏幕和多屏顯示和高端產品（Oxide/LTPs/OLED）的機會持樂觀態度。其他關鍵指導包括：1）FY24E海外市場實現兩位數增長，並在FY27E將銷售佔比提高到50%（1H24爲30%）；2）系統業務在2024年增長100%+；3）在2H24相較於1H24，由於運營效率和成都工廠的提速，NPm改善；4）日本/韓國訂單的勝出將推動2025-26E的增長；5）越南工廠一期正在施工中，完工後將爲銷售額貢獻10-20%的增長。
Revenue growth back on track; Reiterate BUY. We raised FY24-26E EPS by 2-9% to reflect 1H24 results, 2H profitability improvement and rapid overseas expansion. Our new TP of HK$10.48 is based on same 15x FY25E P/E. Trading at 7.7x/6.1x FY24/25E P/E (1-sd below hist. avg), the stock is attractive in our view.
營業收入增長重新回到正軌；重申買入。我們上調了2024-2026E每股收益2-9%，以反映2024上半年的業績、下半年盈利改善和快速的境外擴張。我們的目標價爲港幣10.48，基於相同的15倍2025E市盈率。按照歷史平均值以下1個標準差的7.7倍/6.1倍2024/25E市盈率交易，我們認爲該股具有吸引力。
譯文內容由第三人軟體翻譯。
