Himile Science And Technology(SZ:002595) Huaxin Securities·2024-06-26 05:30Investment Rating - The report assigns a "Buy" investment rating for the company, Haomai Technology (002595.SZ) [1][2]. Core Insights - The tire industry is experiencing high demand, which is expected to benefit the tire mold sector significantly. The operating rate of semi-steel tires has been on the rise since 2021, reaching a historical high of 78.42% in June 2024, an increase of 8.06 percentage points year-on-year. Haomai's market share in the mold sector exceeds 30%, indicating strong demand for its products [1]. - The company's CNC machine tool business has shown rapid growth, with revenue reaching 308 million yuan in 2023, a year-on-year increase of 111.76%. The company is focused on enhancing product performance and brand building, with high R&D and sales investments, which currently result in lower gross and net profit margins. However, as the business scales, profitability is expected to improve [1]. - The establishment of a factory in Mexico is anticipated to enhance the company's overseas expansion capabilities. In 2023, Haomai achieved overseas revenue of 3.314 billion yuan, a year-on-year increase of 9.45%, with overseas revenue accounting for 46.25% of total revenue. The gross margin for overseas operations was 44.18%, significantly higher than the domestic margin [1]. - Revenue forecasts for the company are projected at 8.217 billion yuan, 9.405 billion yuan, and 10.662 billion yuan for 2024, 2025, and 2026, respectively. The earnings per share (EPS) are expected to be 2.32 yuan, 2.64 yuan, and 2.99 yuan for the same years. The current stock price corresponds to price-to-earnings (PE) ratios of 16, 14, and 12 times for the respective years [1][3]. Summary by Sections Company Overview - Haomai Technology is positioned to benefit from the high demand in the tire industry and is expanding its CNC machine tool business, which is still in its early stages but shows promising growth potential [1]. Financial Performance - The company reported a significant increase in revenue and profit margins, with a notable growth rate in overseas markets. The financial forecasts indicate continued growth in revenue and profitability over the next few years [3][4]. Market Position - Haomai holds a strong market position in the tire mold industry with a substantial market share and is actively expanding its global footprint through new facilities and increased overseas sales [1][2].