SANHUA(SZ:002050) SINOLINK SECURITIES·2024-07-03 00:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [11]. Core Insights - The company is projected to achieve revenue of 67.16 to 79.69 billion RMB in Q2 2024, reflecting a year-on-year change of -2% to +16% and a quarter-on-quarter increase of +4% to +24% [1]. - The net profit attributable to the parent company is expected to be between 8.17 and 9.56 billion RMB in Q2 2024, with a year-on-year growth of 3% to 21% [1]. - For the first half of 2024, revenue is forecasted to be between 131.55 and 144.08 billion RMB, showing a year-on-year increase of 5% to 15% [1]. - The net profit for the first half of 2024 is estimated to be between 14.64 and 16.04 billion RMB, also reflecting a year-on-year growth of 5% to 15% [1]. Revenue and Profit Analysis - Revenue growth is primarily driven by new orders in the electric vehicle thermal management sector and an increase in market share for air conditioning components [2]. - The company has managed to maintain a positive growth in net profit margin despite pressures from price reductions by main manufacturers and downstream customers [2]. - The company is expected to benefit from the increasing penetration of electric vehicles, positioning it as a leader in thermal management solutions [2]. Financial Forecasts - Revenue projections for 2024 to 2026 are adjusted to 276.91 billion, 340.47 billion, and 414.97 billion RMB, with year-on-year growth rates of 12.8%, 23%, and 21.9% respectively [3]. - Net profit forecasts for the same period are set at 34.25 billion, 41.95 billion, and 50.10 billion RMB, with year-on-year growth rates of 17.24%, 22.49%, and 19.44% respectively [3]. - As of July 2, the market capitalization corresponds to a PE ratio of 21.13 for 2024, indicating a favorable valuation [3].