Event: The company released its 2024 semi-annual report. In 2024H1, the company achieved total operating income of 48.642 billion yuan, an increase of 13.27% year on year; net profit to mother was 2.016 billion yuan, an increase of 34.61% year on year.
Among them, the total revenue of 2024Q2 in a single quarter was 25.156 billion yuan, up 6.98% year on year; net profit to mother was 1.035 billion yuan, up 17.26% year on year.
The main business performance is steady, and export sales are growing rapidly. By product: 2024H1's revenue growth rates for HVAC and ice washing were 7.59% and 26.81%, respectively; by region: 2024H1's domestic sales and export sales revenue growth rates were 3.52% and 27.87% respectively.
Profitability declined slightly. Gross profit margin: 2024Q2 companies' gross margin was -0.92 pct to 20.95% year over year.
Rate side: 2024Q2 sales/management/R&D/finance rate was 10.38%/2.30%/3.46%/-0.13%, year-on-year change -0.39pct/0.14pct/0.62pct/1.01pct. Changes in R&D rates are mainly due to an increase in R&D investment; changes in financial rates are mainly due to a decrease in exchange earnings. Net interest rate: The company's 2024Q2 net interest rate changed year-on-year - 0.21pct to 5.93%.
A healthy cash flow. Cash flow: 24Q2 net operating cash flow was 1.944 billion yuan, a year-on-year decrease of 33.55%. This is mainly due to an increase in balanced production reserves and an increase in paid performance bonuses, etc.
Cash received from sales of goods was 18.899 billion yuan, +5.36% year over year. Balance sheet: As of 24Q2, the company's inventory was 9.31% YoY/ -7.43%, contract liabilities were -29.29%/-11.93% YoY/ -11.93%, and other current liabilities were +1.46%/-0.62% YoY.
Profit forecasting and investment advice. Considering the company's performance in the first half of 2024 and the overall environment of the industry, we expect the company to achieve net profit of 3.272/3.752/4.23 billion yuan in 2024-2026, an increase of 15.3%/14.7%/12.8% year-on-year, and maintain the “increase” investment rating.
Risk warning: Real estate market fluctuation risk, raw material price fluctuation risk, automotive thermal management business expansion falls short of expectations, market competition increases risk.