Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.34, corresponding to a P/E ratio of 13 times for 2024 [2][4]. Core Views - The company’s revenue for H1 2024 was approximately USD 2.1 billion, showing a year-on-year growth of 1% after adjustments, outperforming the market by 1.2 percentage points [1]. - The North American market faced challenges due to reduced electric vehicle plans, while the Asia-Pacific market exhibited strong growth, with a 27.5% increase in revenue to USD 595 million [2]. - The company expects to achieve USD 6 billion in new orders for the full year and anticipates revenue growth to exceed the market by 3 percentage points [1][2]. Summary by Sections Financial Performance - H1 2024 gross margin was 10%, up 1 percentage point year-on-year, primarily due to reduced raw material costs [1]. - EBITDA increased by 6% year-on-year to USD 19.7 million, with an EBITDA margin improvement of 0.5 percentage points to 9.4% [1]. - The net profit attributable to shareholders for H1 2024 was USD 15.7 million, a decrease of 54% year-on-year, resulting in a net profit margin of 0.7% [1]. Market Dynamics - The company secured USD 2.1 billion in orders in H1 2024, with 43% coming from Chinese OEMs, nearly tripling the order size compared to the same period in 2023 [2]. - The company is expanding its product offerings in the Asia-Pacific region and has successfully obtained DPEPS orders [2]. Future Outlook - The company is optimistic about the rapid growth of the Chinese electric vehicle market and expects to maintain high growth rates in its Asia-Pacific business [2]. - The company plans to launch its first steer-by-wire technology vehicle in collaboration with a Chinese OEM by 2026, positioning itself to benefit from the increasing penetration of advanced driving technologies [2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.24, indicating a potential upside from the current price of HKD 2.47 [1][9]. Core Insights - The company reported a revenue of USD 2.1 billion for the first half of 2024, a slight decrease of 0.1% year-on-year, with a net profit of USD 15.7 million, down 53.8% year-on-year. The gross margin improved to 10.1%, up 1 percentage point year-on-year [2]. - The Asia-Pacific region showed strong growth, with a revenue increase of 9.3% year-on-year, while North America experienced a decline of 6.3% [2]. - The decline in net profit was primarily due to impairment losses related to specific customer projects and increased tax expenses. However, the company expects a stabilization and recovery in gross and net profits in 2024 due to cost reduction efforts and a favorable raw material price trend [2][3]. Summary by Sections Financial Performance - Revenue for H1 2024 was USD 2.1 billion, with a net profit of USD 15.7 million. The gross margin was 10.1%, and EBITDA margin was 9.4% [2]. - Revenue breakdown by region for H1 2024: North America USD 1.12 billion (-6.3% YoY), Asia-Pacific USD 590 million (+9.3% YoY), EMEASA USD 370 million (+1.4% YoY) [2]. Growth Drivers - The company successfully launched 38 new customer projects in H1 2024, with a focus on electric vehicle (EV) projects, indicating a robust order book and potential for above-market growth [3]. - The company is positioned to benefit from advancements in autonomous driving technology and has secured two orders for steer-by-wire systems, showcasing its technological leadership [3]. Earnings Forecast - The company is projected to achieve a compound annual growth rate (CAGR) of 73.4% in net profit from 2024 to 2026, with corresponding price-to-earnings (PE) ratios of 9, 5.7, and 4.1 for the respective years [3][9].

周一早上九点加入我们的奈叙特解读电话会我们也是看到了奈叙特上周发布了中报今天我们也是非常高兴的请到了奈叙特的IR总监Tony王王宇同王总跟大家来一块解读王总您好你好 非常感谢接触相信大家也是对奈斯特比较熟悉了那么我们今天也就是简要的我这边来播报一下中报的情况然后后面就直接进入到问答的环节 那么我们看到公司上半年的这个营收情况上半年是营收21亿美元同比基本上持平这个规模净利润是大约在1600万美元同比有一定的 这个下降这个扣分也是跟这个规模的同比下降幅度差不多都是50%左右但是公司上半年毛利率在这个10.5个点比2023年上半年和2023年全年都有一个点左右的这个回升那么一币大率是这个也是有一定的这个回升那么我们也是看到了公司上周发布的中报然后这边的话 我也是收集了比较多的投资者的提问,我们可能就先逐一的向王总请教,然后后面如果有时间的话,我们来进行自由的提问。首先就是想请教一下,我们上半年其实毛利率和EBITDA占营收的比例, 同比去年同期都是有提升的但是我们看到净利润是有不小幅度的下滑您是否能解读一下这里面的一些差异然后导致利润下滑的在盲利率和ebitda以外的重点因素是什么谢谢好的谢谢一鸣谢谢大家早上的时 ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of $2.1 billion in H1 2024, a slight decrease of 0.1% year-on-year, with a net profit of $16 million, down 54% year-on-year due to non-recurring factors [3] - The company outperformed the market in terms of revenue growth, particularly in the Asia-Pacific region, which contributed the largest revenue increase [3] - The company aims to become a leader in steer-by-wire technology, with a total order intake of $6.1 billion in 2023, 83% of which comes from new energy customers [4] Revenue and Profit Forecast - Revenue forecasts for 2024-2026 are set at $4.495 billion, $4.900 billion, and $5.243 billion, representing year-on-year growth of 7%, 9%, and 7% respectively [4] - The net profit forecasts for the same period have been adjusted to $88 million, $154 million, and $203 million, reflecting year-on-year growth of 140%, 75%, and 32% respectively [4] - The corresponding P/E ratios are projected to be 9, 5, and 4 times for 2024, 2025, and 2026 [4] Regional Performance - North America reported revenue of $1.12 billion in H1 2024, a decline of 6.3% year-on-year, primarily due to poor market performance of clients and the conclusion of certain projects in 2023 [3] - The Asia-Pacific region achieved revenue of $600 million, up 9.3% year-on-year, with China contributing $520 million, a growth of 12.9% [3] - Revenue from Europe, the Middle East, Africa, and South America was $366 million, a slight increase of 1.4% year-on-year, impacted by a $10 million loss due to flooding in Brazil [3]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 4.0 HKD, indicating a potential upside of 68% from the current price of 2.4 HKD as of August 15, 2024 [4][2]. Core Insights - The company's revenue for the first half of 2024 reached 2.1 billion USD, remaining flat year-on-year, while net profit significantly declined by 54% to 15.69 million USD due to project cancellations leading to impairment of intangible assets and increased tax expenses [2][1]. - The Asia-Pacific market is performing well, with a 9.3% year-on-year revenue increase, while North America is under pressure with a 6.3% decline [2][1]. - The company secured new orders worth 2.1 billion USD in the first half of 2024, with 49% from North America and 46% from the Asia-Pacific region, indicating strong demand, particularly from Chinese automakers [2][1]. Summary by Sections Financial Performance - Revenue for 2024 is projected to be 4.36 billion USD, with a growth rate of 3.7% year-on-year, while net profit is expected to rebound to 0.8 billion USD, reflecting a growth rate of 108.1% [2][3]. - The company experienced a significant drop in net profit in 2023, with a forecasted recovery in subsequent years [8][7]. Market Analysis - The report highlights the strong growth potential in the Chinese market, particularly with the upcoming launch of the Changshu factory in 2025, which is expected to accelerate business development [2][1]. - The report notes that 43% of new orders in the first half of 2024 came from Chinese vehicle manufacturers, showcasing deepening partnerships in the region [2][1]. Financial Projections - The company’s projected financials indicate a gradual increase in revenue and net profit over the next few years, with expected revenues of 4.36 billion USD in 2024, 4.65 billion USD in 2025, and 5.00 billion USD in 2026 [7][8]. - The net profit margin is expected to improve, with net profit projected to reach 2.1 billion USD by 2026, reflecting a growth rate of 37.1% [2][3].

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company’s 1H24 performance was below expectations, with revenue declining by 0.1% year-on-year to $2.1 billion, accounting for 47% of the full-year forecast. The net profit dropped by 54% year-on-year to $16 million [1]. - The Asia-Pacific region drove performance growth, with revenue increasing by 9.3% year-on-year to $600 million, contributing 28% to total revenue [1]. - The company is focusing on cost reduction and leveraging its steering technology advantages to expand its customer base and business [1]. Summary by Sections Financial Performance - 1H24 revenue was $2.1 billion, with a gross margin of 10.1% and EBITDA of $197 million, reflecting a 6.0% increase year-on-year [1]. - The net profit for 1H24 was $16 million, significantly lower than the previous year [1]. - The company’s EBITDA margin improved by 0.5 percentage points to 9.4% [1]. Regional Performance - The Asia-Pacific region's revenue accounted for 28% of total revenue, up 2 percentage points year-on-year, while North America’s share decreased by 4 percentage points to 53% [1]. - The EBITDA margin in the Asia-Pacific region rose by 2.6 percentage points to 17.6% [1]. Business Outlook - The management targets a full-year order goal of $6 billion for 2024, with expectations to launch the first steer-by-wire product in collaboration with Chinese manufacturers by 2026 [1]. - The company is optimistic about its steering technology and modular advantages to attract new clients, including partnerships with major electric vehicle manufacturers [1]. - The target price has been adjusted to HKD 2.81, corresponding to approximately 13 times the 2024 EPS [1].

Summary of Conference Call Company/Industry Involved - The discussion involves Wright's new performance metrics and financial results. Core Points and Arguments - The company reported that the performance in the first half of the year was relatively average, with observable data showing a decline [1] - However, there is an indication that recent developments, particularly in capability and gross margin, have shown some improvement [1] Other Important but Possibly Overlooked Content - The mention of "capability" suggests a focus on operational efficiency or product development, which could be a potential area for future growth [1]

Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company continues to show growth potential in the Asia-Pacific region, with a significant increase in orders from Chinese automakers [3] - The company's revenue for the first half of 2024 was USD 2.10 billion, a slight decrease of 0.1% YoY, but gross margin improved by 1.0 percentage points to 10.0% [3] - Net profit attributable to shareholders decreased by 53.8% YoY to USD 20 million, with a net profit margin of 0.7%, down 0.9 percentage points YoY [3] - The company successfully launched 38 new customer projects in the first half of 2024, with nearly half being pure EV projects [3] - New orders in the first half of 2024 amounted to USD 2.1 billion, with Chinese automakers contributing 43% of the total [3] Financial Performance Revenue Breakdown by Product - Electric Power Steering (EPS) product sales revenue was USD 1.40 billion, down 2.6% YoY [3] - Steering Column and Intermediate Shaft (CIS) product sales revenue was USD 220 million, up 18% YoY [3] - Hydraulic Power Steering (HPS) product sales revenue was USD 90 million, up 5.3% YoY [3] - Driveline (DL) product sales revenue was USD 380 million, down 0.8% YoY [3] Revenue Breakdown by Region - North America revenue was USD 1.12 billion, down 6.3% YoY [3] - Asia-Pacific revenue was USD 590 million, up 9.3% YoY [3] - Europe, Middle East, Africa, and South America revenue was USD 370 million, up 1.4% YoY [3] - Other regions contributed USD 20 million [3] Financial Forecast - Revenue is expected to be USD 4.5 billion, USD 5.0 billion, and USD 5.9 billion for 2024, 2025, and 2026, respectively [3] - Net profit attributable to shareholders is forecasted to be USD 101 million, USD 237 million, and USD 313 million for 2024, 2025, and 2026, respectively [3] - EPS is projected to be USD 0.04, USD 0.09, and USD 0.12 for 2024, 2025, and 2026, respectively [3] Valuation - The company is valued at 11-13x PE for 2024, with a fair value range of HKD 3.44-4.07 (converted at HKD 1 ≈ USD 0.13) [3] Comparable Companies - Comparable companies include Bethel (603596 SH) and Top Group (601689 SH), with average PE ratios of 22x, 17x, and 19x for 2022, 2023, and 2024E, respectively [5] Financial Statements Income Statement - Revenue for 2023 was USD 4.21 billion, with a YoY growth of 10% [4] - Net profit attributable to shareholders for 2023 was USD 37 million, a decrease of 37% YoY [4] - EPS for 2023 was USD 0.01 [4] Balance Sheet - Total assets for 2023 were USD 3.41 billion, with current assets at USD 1.55 billion and non-current assets at USD 1.86 billion [7] - Total liabilities for 2023 were USD 1.39 billion, with current liabilities at USD 1.09 billion and non-current liabilities at USD 305 million [7] - Shareholders' equity for 2023 was USD 2.01 billion [7] Cash Flow Statement - Operating cash flow for 2024E is projected to be USD 404 million [6] - Net cash flow for 2024E is expected to be USD 57 million [6] Key Financial Ratios - Gross margin for 2023 was 8.76%, expected to increase to 10.70% in 2024E [6] - Net profit margin for 2023 was 0.87%, expected to rise to 2.22% in 2024E [6] - ROE for 2023 was 1.87%, projected to increase to 4.89% in 2024E [6] - ROIC for 2023 was 2.07%, expected to rise to 5.46% in 2024E [6]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was $2,098,927 thousand, a slight decrease of 0.1% compared to $2,101,830 thousand for the same period in 2023[2] - Gross profit increased to $210,927 thousand, up 10.5% from $190,831 thousand in the previous year[2] - Operating profit decreased to $41,311 thousand, down 11.0% from $46,818 thousand in the prior period[2] - Net profit for the period was $23,061 thousand, a decline of 38.4% compared to $37,402 thousand in the same period last year[2][3] - Basic and diluted earnings per share for the period were $0.006, down from $0.014 in the previous year[2] - Adjusted EBITDA for the six months ended June 30, 2024, was $197,295 thousand, an increase from $186,134 thousand in the same period of 2023, representing a growth of 5.8%[21] - The company reported a net profit before tax of $40,790 thousand for the six months ended June 30, 2024, down from $45,799 thousand in 2023, a decrease of 11%[21] - The net profit attributable to equity holders for the six months ended June 30, 2024, was $15.7 million, representing 0.7% of total revenue, a decrease of $18.3 million from $34.0 million (1.6% of total revenue) for the same period in 2023[51] Assets and Liabilities - Total assets as of June 30, 2024, were $3,359,230 thousand, a decrease from $3,404,593 thousand as of December 31, 2023[5][7] - Total liabilities decreased to $1,364,231 thousand from $1,393,752 thousand at the end of 2023[7] - Accounts receivable totaled $806.5 million as of June 30, 2024, compared to $752.2 million on December 31, 2023, with a provision for impairment of $6.2 million[36] - The company’s accounts payable amounted to $810.3 million as of June 30, 2024, down from $833.4 million on December 31, 2023[39] - As of June 30, 2024, total borrowings amounted to $47.9 million, a decrease of $1.2 million from $49.1 million as of December 31, 2023[69] Market Performance - North America generated $664,380 thousand in revenue for the six months ended June 30, 2024, down from $709,033 thousand in 2023, a decrease of 6.3%[22] - The Asia-Pacific region, particularly China, saw revenue increase to $524,420 thousand in 2024 from $464,570 thousand in 2023, marking a growth of 12.9%[22] - The North America segment's revenue decreased by $75.5 million or 6.3% due to poor market performance of specific customer projects and the conclusion of several customer projects in 2023[47] - The Asia-Pacific segment's revenue increased by $50.6 million or 9.3%, driven by a significant number of new projects launched in recent years, despite a 21.0 million adverse impact from foreign currency translation[48] - The Europe, Middle East, Africa, and South America segment's revenue increased by $5.2 million or 1.4%, despite a decline in light vehicle production in Europe and South America[49] Costs and Expenses - The cost of goods sold, including inventory used, was $1,339,211,000 for the six months ended June 30, 2024, compared to $1,391,251,000 in 2023, reflecting a decrease of approximately 3.7%[27] - Employee labor and benefits costs increased to $322,679,000 from $288,777,000, marking an increase of about 11.7%[27] - The total administrative expenses for the six months ended June 30, 2024, were $2,059,040,000, slightly up from $2,056,312,000 in 2023[27] - Engineering and product development costs for the six months ended June 30, 2024, were $88.6 million, representing 4.2% of revenue, an increase of $20.6 million or 30.3% from $68.0 million (3.2% of revenue) for the same period in 2023[54] - Selling, distribution, and general and administrative expenses for the six months ended June 30, 2024, were $82.4 million, accounting for 3.9% of revenue, an increase of $5.1 million or 6.6% from $77.3 million (3.7% of revenue) for the same period in 2023[56] Foreign Exchange and Taxation - The company reported a foreign exchange loss of $25,256 thousand for the period, compared to a loss of $10,086 thousand in the previous year[4] - The income tax expense for the six months ended June 30, 2024, was $17,729,000, compared to $8,397,000 for the same period in 2023, indicating a significant increase of approximately 111.0%[30] - The group's income tax expense for the six months ended June 30, 2024, was $17.7 million, representing 43.5% of pre-tax profit, an increase of $9.3 million from $8.4 million (18.3%) for the same period in 2023[60] Strategic Focus and Future Outlook - The company continues to focus on expanding its market presence in North America, Europe, and Asia, particularly in the development of advanced driver-assistance systems (ADAS) and autonomous driving technologies[8] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20] - The company aims to maintain a leading position in advanced steering and powertrain systems, focusing on electrification, driving assistance, and ADAS technology[75] Corporate Governance and Compliance - The company has adopted internal controls and corporate governance policies in compliance with the Hong Kong Corporate Governance Code[78] - The chairman and CEO roles are distinct, with the current chairman also serving as CEO since June 21, 2022, to provide consistent leadership[79] - All directors confirmed compliance with the standard code of conduct for securities trading as of June 30, 2024[81] - The company has adopted a risk management and internal control system, which is regularly reviewed for effectiveness[82]

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The report highlights the company's incentive plan aimed at aligning the interests of senior management with company goals and providing additional financial incentives. A total of 5.5792 million awards were granted to 12 senior management members, with a cash value equivalent to 3.4025 million USD [2][3]. - The incentive plan is expected to enhance management efficiency and support business expansion in the Asia-Pacific market, as well as the development and market penetration of new steer-by-wire products [3]. - The company is projected to maintain strong growth potential, with revenue forecasts of 4.61 billion USD, 5.11 billion USD, and 6.045 billion USD for 2024, 2025, and 2026 respectively. Net profit attributable to the parent company is expected to be 154 million USD, 252 million USD, and 337 million USD for the same years, with corresponding EPS of 0.06 USD, 0.10 USD, and 0.13 USD [3][4]. Summary by Sections Investment Highlights - The company has launched an incentive plan to align management interests with company objectives and provide additional financial incentives [2]. - The performance metrics for the incentive plan focus on the "Total Shareholder Return," which includes stock price appreciation and dividend yield relative to industry peers [2]. Financial Forecasts - Revenue is expected to grow from 4.213 billion USD in 2023 to 6.045 billion USD in 2026, with year-on-year growth rates of 10%, 9%, 11%, and 18% respectively [4][6]. - Net profit is projected to recover from a loss of 37 million USD in 2023 to 337 million USD in 2026, with significant growth rates in the following years [4][6]. - The company’s EPS is forecasted to increase from 0.01 USD in 2023 to 0.13 USD in 2026 [4][6]. Valuation - The report suggests a price-to-earnings (P/E) ratio of 12-14x for 2024, leading to a fair value range of 5.75 to 6.71 HKD (approximately 0.75 to 0.87 USD) [3][4].