Core Viewpoint - The company reported strong financial performance in the first half of the year, with significant revenue and profit growth driven by increased orders and cost efficiency improvements [1][2]. Financial Performance - The company achieved revenue of 839 million yuan in the first half, a year-on-year increase of 41.20%, and a net profit attributable to shareholders of 138 million yuan, up 110.25% year-on-year [1]. - In Q2, revenue reached 448 million yuan, reflecting a year-on-year growth of 38.07% and a quarter-on-quarter increase of 14.98% [1]. - The gross margin and net margin for Q2 were 41.35% and 16.93%, respectively, with year-on-year increases of 2.71 percentage points and 5.08 percentage points [2]. Cost Management and Profitability - The improvement in net margin was primarily due to product mix adjustments and enhanced cost control, along with a reduction in stock incentive expenses [2]. - The company reported a net cash flow from operating activities of 167 million yuan in the first half, a significant increase of 248.64% year-on-year, attributed to higher sales collections [2]. Industry Position and Growth Areas - The company is well-positioned as a leader in the domestic fuse industry and is accelerating its expansion into emerging and global markets [1][3]. - In the first half, revenue from the new energy vehicle sector was 556 million yuan, up 52.41% year-on-year, while revenue from wind power and energy storage was 188 million yuan, an increase of 13.54% [3]. - The company is focusing on high-end markets with products like incentive fuses and smart fuses, which are expected to see increased market penetration due to rising demand for active protection [3]. International Expansion and New Markets - The company is actively expanding into international markets, having entered the supply chains of major players like Tesla and Daimler in the new energy vehicle sector [4]. - The planned production capacity in Thailand is expected to account for about 10% of total capacity, primarily serving the European and North American markets [4]. Profit Forecast and Valuation - The company maintains profit forecasts for 2025-2027 at 320 million yuan, 410 million yuan, and 540 million yuan, with corresponding EPS of 3.22, 4.21, and 5.45 yuan [5]. - Based on comparable company PE averages, a 2025 PE valuation of 32 times is applied, resulting in a target price of 102.84 yuan [5].
中熔电气(301031)：Q2业绩同比高增 新品与出海拓成长