Investment Rating - Maintains a "Buy" rating, with upward revisions to net profit forecasts for 2024-2026 by 4.2%/1.4%/0.1% to 3.0/3.25/3.53 billion RMB, respectively [5] Core Viewpoints - Downstream industry demand recovery drives steady performance growth, with overseas exports further boosting performance [1] - Global layout yields results, with the company achieving steady growth in revenue and net profit [2] - The company benefits from the recovery in demand for downstream industries such as consumer goods, home appliances, and 3C products, driving significant growth in its Mars and Changfeiya series [3] - Overseas market expansion and globalization strategy continue to drive performance growth, with significant sales increases in Southeast Asia, North America, and South America [4] Financial Performance - 2024H1 revenue reached 8.02 billion RMB, a 25.7% YoY increase, with net profit attributable to shareholders of 1.52 billion RMB, up 23.5% YoY [2] - Gross margin improved to 32.3%, up 0.3 percentage points YoY, while net margin slightly declined by 0.3 percentage points to 19.0% [2] - Revenue from injection molding machines increased by 26.2% YoY to 7.7 billion RMB, while parts and service revenue grew by 14.9% YoY to 320 million RMB [3] - Domestic revenue grew by 33.7% YoY to 5.18 billion RMB, and overseas revenue increased by 13.2% YoY to 2.84 billion RMB [4] Market and Industry Trends - The company is expected to benefit from the trend of energy-saving and intelligent injection molding machines, as well as the "Large-scale Equipment Renewal and Consumer Goods Replacement Action Plan" [3] - The global automotive industry, particularly the overseas capacity investment in new energy vehicles, supports stable growth in the company's Jupiter series [3] - The company's "Five-Five" strategy and overseas market layout across Asia, Europe, North America, and South America are expected to drive future growth [4] Financial Projections - Revenue is projected to grow from 15.875 billion RMB in 2024E to 18.098 billion RMB in 2026E [11] - Net profit is expected to increase from 3.004 billion RMB in 2024E to 3.527 billion RMB in 2026E [11] - EPS is forecasted to rise from 1.88 RMB in 2024E to 2.21 RMB in 2026E [5] Valuation Metrics - P/E ratio is projected to decline from 14 in 2024E to 9 in 2026E [6] - P/B ratio is expected to decrease from 1.9 in 2024E to 1.2 in 2026E [6] - ROE (attributable to parent company) is forecasted to remain stable, ranging from 13.8% to 14.3% from 2024E to 2026E [6]

Investment Rating - The report maintains an "Outperform" rating for Haitian International Holdings [3][6][15] Core Views - The company experienced rapid growth in revenue and profit in 1H24, with revenue reaching 8 billion yuan, a year-on-year increase of 25.7% and a sequential increase of 19.9%. The net profit attributable to the parent company was 1.52 billion yuan, up 23.5% year-on-year and 20.7% sequentially [11][12] - The company has a positive outlook for the second half of the year, driven by global industrial chain restructuring and domestic demand expansion policies [13][14] Revenue and Profit Growth - 1H24 revenue was 8 billion yuan, with a year-on-year increase of 25.7% and a sequential increase of 19.9%. Net profit was 1.52 billion yuan, up 23.5% year-on-year and 20.7% sequentially [11][12] - The gross margin for 1H24 was 32.3%, up 0.3 percentage points year-on-year, while the operating profit margin was 21.8%, up 0.5 percentage points year-on-year [11][12] Market Performance - Domestic revenue in 1H24 was 5.18 billion yuan, up 33.7% year-on-year, while overseas revenue was 2.84 billion yuan, up 13.2% year-on-year [12][4] - The company has increased its market share through product strategy and the promotion of energy-efficient models [4][12] Product and Market Strategy - The company plans to enhance product diversity and expand its global presence by increasing R&D efforts and introducing more targeted products [14][15] - The company will continue to implement its "Five Five" strategy to deepen its overseas market layout [14][15] Financial Forecasts - Revenue forecasts for 2024 and 2025 have been increased to 16.4 billion yuan and 17.9 billion yuan, respectively, with net profit forecasts raised to 3.1 billion yuan and 3.5 billion yuan [15][6] - The target price has been raised to 28.6 HKD, corresponding to a 12x PE valuation for 2025 [15][6]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved revenue of 8.018 billion yuan in H1 2024, representing a year-on-year increase of 25.67%, driven by the recovery in demand for injection molding machines and global supply chain restructuring [3][8] - The gross profit margin slightly increased to 32.32%, while the net profit margin for shareholders decreased to 18.97% due to foreign exchange losses [4][11] - The company is enhancing its competitiveness through new product iterations, including the launch of a new generation of machines targeting both high-end and value-sensitive markets [14] - The overseas market presents significant growth potential, with a well-established global presence including six regional management centers and five manufacturing centers [14] Summary by Sections Revenue and Profitability - In H1 2024, the company reported total revenue of 80.18 billion yuan, with a gross profit of 25.92 billion yuan and a net profit attributable to shareholders of 15.21 billion yuan, reflecting increases of 25.67%, 26.88%, and 23.50% respectively [3][8] - The revenue from injection molding machines was 77.03 billion yuan, up 26.15% year-on-year, while parts and services generated 3.15 billion yuan, up 14.86% [9] Financial Metrics - The company’s earnings per share (EPS) for 2024 is projected to be 1.87 yuan, with a price-to-earnings (P/E) ratio of 11.47 [2][15] - The net profit forecast for 2024-2026 has been adjusted to 29.92 billion yuan, 32.50 billion yuan, and 36.78 billion yuan respectively, with corresponding P/E ratios of 11, 11, and 9 [15] Market Position and Strategy - The company is focusing on high-end markets with the introduction of a new generation of machines that offer improved performance and energy efficiency, while also targeting lower-tier markets with cost-effective models [14] - The global injection molding machine market is significantly larger than the domestic market, with a 2022 market size of 154.35 billion yuan compared to 26.35 billion yuan in China, indicating substantial growth opportunities for the company [14]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved revenue of 8.018 billion yuan in H1 2024, representing a year-on-year increase of 25.67%, driven by the recovery in demand for injection molding machines and global supply chain restructuring [3][8] - The gross profit margin slightly increased to 32.32%, while the net profit margin for shareholders decreased to 18.97% due to foreign exchange losses [4][11] - The company is enhancing its competitiveness through new product iterations, including the launch of a new generation of machines targeting both high-end and budget markets [14] - The overseas market presents significant growth potential, with the company having established a comprehensive global presence [14] Revenue and Profit Forecast - The company’s total revenue is projected to reach 16.33 billion yuan in 2024, with a net profit forecast of 2.992 billion yuan, reflecting a growth rate of 20.07% [2][15] - The earnings per share (EPS) is expected to increase from 1.56 yuan in 2023 to 1.87 yuan in 2024 [2][15] Financial Performance - In H1 2024, the company reported a gross profit of 2.592 billion yuan, with a year-on-year increase of 26.88% [3][8] - The company’s operating cash flow remained stable at 1.205 billion yuan, despite a 5.86% decline year-on-year [12][14] Market Position and Strategy - The company is positioned as a leader in the injection molding machine industry, with a strong focus on product innovation and market expansion [14][15] - The global injection molding machine market is significantly larger than the domestic market, indicating substantial growth opportunities for the company [14]

Financial Performance - For the six months ended June 30, 2024, the company's revenue reached RMB 8,017.8 million, an increase of 25.7% compared to RMB 6,380.2 million in the same period of 2023[3] - Gross profit for the same period was RMB 2,591.6 million, reflecting a 26.9% increase from RMB 2,042.5 million year-on-year, with a gross margin of 32.3% compared to 32.0% in the previous year[5] - The net profit attributable to shareholders for the six months ended June 30, 2024, rose to RMB 1,520.6 million, a 23.5% increase from RMB 1,231.3 million in the same period of 2023[3] - Basic earnings per share for the reporting period was RMB 0.95, up 23.5% from RMB 0.77 in the previous year[5] - The company reported a profit of CNY 1,520,630 thousand for the six months ended June 30, 2024, compared to CNY 1,231,279 thousand for the same period in 2023, reflecting a growth of 23.5%[13] - The gross profit margin increased by 0.3 percentage points to 32.3% due to lower raw material prices compared to the previous year[40] - Shareholders' net profit for the first half of 2024 rose to RMB 1,520.6 million, a 23.5% increase compared to the same period in 2023[59] Cash Flow and Financial Position - The net cash generated from operating activities was RMB 1,205.4 million, slightly down from RMB 1,280.4 million in the same period of 2023[5] - The company's net cash position, including financial products, was RMB 10,650.0 million as of June 30, 2024, compared to RMB 10,835.2 million as of December 31, 2023[5] - Cash and cash equivalents at the end of June 2024 were CNY 2,379,795 thousand, down from CNY 5,437,087 thousand at the end of June 2023, a decrease of 56.3%[15] - The group maintained a net cash position of RMB 4,367.1 million as of June 30, 2024, down from RMB 6,706.0 million as of December 31, 2023[61] - The group's bank borrowings amounted to RMB 2,116.7 million as of June 30, 2024, down from RMB 2,747.4 million as of December 31, 2023[60] Dividends and Shareholder Returns - The board of directors decided not to declare an interim dividend for the reporting period, pending a review of the full-year performance[5] - The company declared dividends of CNY 957,735 thousand for the six months ended June 30, 2024, compared to CNY 768,277 thousand in the same period of 2023, an increase of 24.7%[15] - The company decided not to declare an interim dividend for the reporting period, with the decision on the annual dividend to be considered after the annual performance review[8] Operational Efficiency and Strategy - The company benefited from the restructuring of the global supply chain and accelerated exports in certain downstream industries, particularly in consumer goods[5] - The company maintains a strong operational flexibility and efficiency, supported by robust working capital management capabilities[5] - The company plans to enhance R&D efforts and introduce more differentiated products to meet market demands, focusing on energy-efficient and intelligent new generation products[49] - The company aims to deepen its overseas market presence and increase the proportion of overseas sales, with new factories under construction as part of its global supply chain strategy[50] Assets and Liabilities - Total assets increased to CNY 30,329,173 thousand in June 2024, up from CNY 29,093,858 thousand in December 2023, representing a growth of 4.25%[10] - Non-current liabilities decreased to CNY 2,208,456 thousand in June 2024 from CNY 2,749,473 thousand in December 2023, a reduction of 19.66%[11] - Current liabilities rose to CNY 8,803,556 thousand in June 2024, compared to CNY 7,502,105 thousand in December 2023, an increase of 17.38%[11] - The company’s total liabilities increased to CNY 11,012,012 thousand in June 2024 from CNY 10,251,578 thousand in December 2023, an increase of 7.4%[11] - Total equity increased to CNY 19,289,943 thousand in June 2024 from CNY 18,816,089 thousand in December 2023, an increase of 2.5%[13] - The company’s retained earnings reached CNY 15,512,298 thousand as of June 30, 2024, up from CNY 14,949,403 thousand in December 2023, an increase of 3.8%[13] Sales Performance - Sales from mainland China reached RMB 5,182,546 thousand, up 33.7% from RMB 3,876,296 thousand in the previous year[27] - The total sales from Hong Kong and overseas countries were RMB 2,835,265 thousand, an increase from RMB 2,503,931 thousand in the previous year[27] - Domestic sales amounted to RMB 5,182.5 million, representing a 33.7% increase from RMB 3,876.3 million in the same period of 2023[42] - Overseas sales reached RMB 2,835.3 million, a 13.2% increase from RMB 2,503.9 million in the same period of 2023[42] - The company’s sales of injection molding machines accounted for 96.1% of total sales in the first half of 2024, with sales amounting to RMB 7,702.5 million, up 26.2% from RMB 6,105.7 million in the same period of 2023[43] - In the first half of 2024, the company's sales of injection molding machines increased by 26.2% to RMB 7,702.5 million, while parts and service sales rose by 14.9% to RMB 315.3 million[45] Expenses and Income - Selling and administrative expenses rose by 13.9% to RMB 1,142.3 million in the first half of 2024, primarily due to increases in sales commissions, labor costs, and R&D expenses[55] - Other income, mainly from government subsidies, increased by 24.3% to RMB 228.7 million in the first half of 2024[56] - Income tax expenses increased by 21.4% to RMB 333.3 million in the first half of 2024, with an effective tax rate of 18.0%[58] Accounting and Reporting - The company has adopted new accounting standards effective January 1, 2024, which may impact financial reporting but did not result in retrospective adjustments[23] - The group established an audit committee to oversee financial reporting and internal controls, comprising three independent non-executive directors[70] Other Financial Metrics - The company reported a decrease in financing costs, with net financing income rising to RMB 133.977 million from RMB 98.859 million year-on-year[6] - Net financing income for the same period was RMB 98,859 thousand, a decrease from RMB 133,977 thousand in 2023[29] - The income tax expense for the six months ended June 30, 2024, totaled RMB 333,343 thousand, compared to RMB 274,476 thousand in the previous year, reflecting an increase of 21.4%[29] - The group reported a foreign exchange loss of RMB 23,770 thousand for the six months ended June 30, 2024, compared to a gain of RMB 41,120 thousand in 2023[28]

Summary of Conference Call Transcript Company Overview - The company discussed is 海天 (Haitian), which has a stable shareholding structure and has successfully transitioned leadership through three generations, indicating a positive and proactive management approach [1] Key Points and Arguments - The leadership of Haitian is characterized as active and ambitious, which is seen as a fortunate aspect for the company as it has reached the third generation of leadership [1] Other Important Content - The complexity of relationships within the company is acknowledged, suggesting that there may be underlying dynamics that could impact future performance or governance [1]

Investment Rating - The report upgrades the investment rating to "Buy" with a revised target price of HK$27.50, up from the previous target price of HK$26.65 [2][3]. Core Insights - The demand for injection molding machines is showing signs of recovery, as indicated by recent company performance and customs data. The net profit forecasts for Haitian International for 2024-2026 have been adjusted to RMB 3.075 billion (+11.4%), RMB 3.257 billion (+9.2%), and RMB 3.215 billion (-0.2%) respectively [2]. - The gross margin forecasts for the same period have been adjusted to 33.4% (+0.9 percentage points), 33.0% (+0.4 percentage points), and 32.3% (-0.5 percentage points) [2]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are RMB 1.927 (+11.4%), RMB 2.055 (+9.2%), and RMB 2.009 (-0.2%) respectively [2]. - The target price corresponds to 13.3x, 12.5x, and 12.7x price-to-earnings ratios for 2024-2026, and a 2.0x price-to-book ratio for 2024 [2]. Financial Performance Summary - For the first half of 2024, revenue is projected to be RMB 7.75 billion, representing a 21.5% year-on-year increase. Gross profit is expected to be RMB 2.59 billion, with a gross margin of 33.4% [7]. - The net profit for the same period is forecasted at RMB 1.66 billion, reflecting a net margin of 21.4% [7]. - The company’s revenue for 2022 was RMB 12.31 billion, which increased to RMB 13.07 billion in 2023, and is expected to reach RMB 15.12 billion in 2024 [12]. Market Context - Haitian International's competitor, Lijin Technology, reported a 40.7% growth in its injection molding machine segment for the six months ending March 31, 2024, indicating a broader industry recovery [2]. - Strong export performance in the injection molding machine sector is noted, with exports amounting to RMB 5.289 billion in the first five months of 2024, a year-on-year increase of 14.1% [2]. - The company benefits from its overseas sales, which accounted for 39.4% of its revenue in 2023, positioning it well to capitalize on the recovery trend in the industry [2].

Investment Rating - Buy (首次) [1] Core Views - The company is a global leader in the injection molding machine industry with a 59-year history of stable family management [3] - The global injection molding machine market is valued at over 100 billion RMB with broad downstream applications [4] - The company leads the industry in revenue scale and profitability with a well-established overseas presence [5] - The company's strong R&D capabilities and differentiated product strategies enable it to capture market share across various segments [5] Company Overview - Founded in 1966, the company has grown into a global leader in the injection molding machine industry with a stable family management structure [3] - The company's revenue grew from 9.819 billion RMB in 2019 to 13.074 billion RMB in 2023, with a CAGR of 7.42% [3] - Net profit attributable to shareholders increased from 1.751 billion RMB in 2019 to 2.492 billion RMB in 2023, with a CAGR of 9.22% [3] - The company maintains a high dividend payout ratio of 30-40% and has a strong liquidity position with 11.2 billion RMB in cash and equivalents [3] Industry Overview - The global injection molding machine market grew from 12.5 billion USD in 2013 to 22.05 billion USD in 2022, with a CAGR of 6.5% [4] - The Chinese market grew from 21.16 billion RMB in 2016 to 26.35 billion RMB in 2022, with a CAGR of 3.7% [4] - The top three application scenarios for injection molding machines are general plastics (28%), automotive (26%), and home appliances (25%) [4] Competitive Advantages - The company is the global leader in revenue scale, with 12.31 billion RMB in 2022, surpassing competitors like Engel and Arburg [5] - The company has a well-established overseas presence with 6 regional management centers, 5 manufacturing centers, and 9 application service experience centers across Asia, Europe, North America, and South America [5] - The company's strong R&D capabilities enable it to launch new products every 5 years, with the latest fifth-generation models offering energy savings of 20-40% [5] Financial Projections - Revenue is expected to grow from 15.77 billion RMB in 2024 to 19.175 billion RMB in 2026, with a CAGR of 10.2% [2] - Net profit attributable to shareholders is projected to increase from 2.98 billion RMB in 2024 to 3.676 billion RMB in 2026, with a CAGR of 11.1% [2] - The company's Mars series is expected to grow at a CAGR of 18.7% from 2024 to 2026, driven by demand from the home appliance and daily necessities sectors [49] Valuation - The company's 2024-2026 PE ratios are 11x, 10x, and 9x, respectively, which are slightly lower than the average PE ratios of comparable companies [51] - Comparable companies include Yizumi (300415.SZ) and LK Technology (0558.HK), with average PE ratios of 12x, 10x, and 9x for 2024-2026 [51]

Investment Rating - The report upgrades the target price to HKD 30 and assigns a "Buy" rating for the company [2]. Core Views - The company is expected to benefit from the recovery of domestic and overseas demand, with a steady improvement in annual performance, including a revenue increase of 6.2% year-on-year to HKD 13.07 billion and a net profit growth of 10% to HKD 2.49 billion [1][2]. - The sales trend for the company's main products, particularly the Mars and Jupiter models, is showing positive momentum, with significant year-on-year growth in sales revenue and volume [1][2]. - The company has established a presence in high-growth markets such as India, Mexico, and Turkey, which is expected to enhance its market share [1]. Summary by Sections Financial Performance - The company reported a total revenue of HKD 13.07 billion for the year, with a gross margin of 32.1%, slightly up from the previous year [1]. - The net cash position stands at HKD 6.7 billion, indicating a strong liquidity position [1]. - The company plans to maintain a dividend of HKD 0.66 per share, a 20% increase year-on-year [1]. Sales and Product Development - The company has successfully promoted its fifth-generation machines, leading to a rebound in orders and sales, with total sales revenue for the Mars model reaching HKD 7.98 billion, a 9.5% increase year-on-year [1]. - The Jupiter model also saw a year-on-year sales revenue increase of 14.5% [1]. - Despite a decline in demand for the Chang Fei Ya electric model, there are signs of recovery in the second half of 2023 [1]. Market Outlook - The company achieved overseas sales of HKD 5.15 billion, a 17.3% increase, with Europe showing significant growth [1]. - Domestic demand remains stable, supported by government policies aimed at boosting consumption and equipment upgrades [1]. - The report anticipates a continued positive cycle of sales growth and equipment investment in the domestic market [1].

h 股 c r 票 a e s e R 研 y [Table_Title] Muyang Zhao 赵沐阳 究 tiu Company Report: Haitian International (01882 HK) 中文版 q (852) 25095375 E 公司报告： 海天国际 (01882 HK) Chinese version muyang.zhao@gtjas.com.hk 23 April 2024 政[Ta策ble刺_Su激mm下ar的y] 内需复苏，“收集” tr  我们维持“收集”评级，并上调目标价上调26.65港元。预计中国将通过扶持 公 o p 政策加大对制造业的支持力度。我们维持海天国际（“公司”）2024-2026年 [RTaabtlien_gR:a nk] Accumulate 司 e R y 股东净利润预测分别为人民币27.61亿元/人民币29.84亿元/人民币32.22 Maintained 报 n a 亿元。我们预计公司 2023 年/2024 年/2025 年的每股盈利分别为人民币 评级： 收集 (维持) p 告 m 1.730 元、人民币1.870元和人民币2.019 ...