24H1's net profit was +29% year-on-year, and Q2 performance reached a record high. 24H1 achieved net revenue/return to mother of 18.94/2.16 billion yuan, +4%/28.6% year-on-year, deducted non-net profit of 1.94 billion yuan, and +29.3% year-on-year. The main non-financial income was 0.107 billion yuan, depreciation preparation was 0.091 billion yuan, financial product profit and loss 0.071 billion yuan, and government subsidies of 0.068 billion yuan. Q2 In a single quarter, the company's net profit was 1.12 billion yuan, +24.6%/+7.4% month-on-month, after deducting non-net profit of 1.01 billion yuan, or +20.3%/+9% month-on-month.
Coal machine sector: 24H1 net profit increased by 26%, and the boom in coal mining continues. Benefiting from the continued good development trend of the coal industry, the company's coal machine business orders continued to grow. 24H1 coal machine sector revenue/net profit of 9.8/2.16 billion yuan, +4.4%/26.4% year on year, net profit margin 22%, +3.8pct year on year. Q2 In a single quarter, the company's coal machine segment revenue was 4.98 billion yuan, +8.3%/+3.1%; net profit was 1.07 billion yuan, +21%/-1.3% month-on-month; net profit margin was 21.5%, +2.3/-1pct month-on-month. The overall revenue of the coal machine sector continued to rise steadily, mainly due to the growth of hydraulic supports and coal machine equipment; the increase in net profit was mainly due to the optimization of the revenue structure, the reduction in material costs, and the increase in the share of revenue of products with high profit margins in the current period.
Auto zero sector: Profits have improved dramatically, and the auto zero business has accelerated the transformation of new energy sources. 24H1 Auto segment revenue/net profit of 9.15/0.18 billion yuan, +3.6%/+71.8% YoY. 1) ASIMCO: 24H1's revenue was 2.67 billion yuan, +20.4% year over year. Both revenue and net profit reached record highs, mainly due to the rapid increase in revenue related to NEV components and a steady rise in commercial vehicle-related business revenue. Revenue from the shock absorption and sealing business in the passenger car and new energy sector increased 34% year over year, and the main components of air suspension systems, battery cooling plates and chassis member businesses successfully obtained customer targets and achieved a breakthrough from zero to one. 2) SEG: 24H1's revenue was 0.641 million yuan, or -3.3%, with a slight loss. However, thanks to the fact that demand in the European and American fuel vehicle markets is still basically stable and the vigorous implementation of various cost reduction and efficiency measures, SEG's overall profitability improved year-on-year. SEG continues to accelerate the expansion of the new energy drive motor business, and has accumulated and broken through in key process technology fields to help acquire new projects. It has obtained fixed rotor project targets from several leading customers.
New progress has been made in the investment business, and capital has enabled industrial transformation and upgrading. The IPO application of Suda Co., Ltd., a shareholder of 24H1 Company obtained approval from the China Securities Regulatory Commission; the participating company Luoyang Bearing Group Co., Ltd. has completed the shareholding system reform and has now carried out IPO guidance, and has a foundation for entering the capital market.
Profit forecasting and valuation. We believe that the company's coal engine business is growing steadily, the zero auto business is recovering, the pace of transformation of new energy sources is firm and steady, and long-term development is worth looking forward to. We expect the company's net profit to be 3.73/4.31/4.94 billion yuan for 24-26, and the corresponding EPS is 2.09/2.41/2.76 yuan. Referring to comparable companies, we will give 9 to 10 times PE in 2024, corresponding to a reasonable value range of 18.81 to 20.9 yuan, maintaining the “superior to the market” rating.
Risk warning. Demand for downstream parts has declined, raw steel prices have risen sharply, and there is some uncertainty about transactions.