KSHG(SH:605333) Minsheng Securities·2024-07-10 03:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a strong potential for growth in the electric and intelligent vehicle sector [9][16]. Core Views - The company is expected to achieve a significant increase in net profit for the first half of 2024, with estimates ranging from 230 to 270 million yuan, representing a year-on-year growth of 660.70% to 758.21% [9]. - The second quarter of 2024 is projected to show a substantial improvement in performance, driven by increased deliveries from major clients, particularly the growth in sales of the AITO series vehicles [9]. - The company is successfully expanding its customer base, moving towards high-end models, and has begun mass production for several new projects, which is expected to enhance revenue and market share [9]. - The report highlights the growing market for wire harnesses in the electric vehicle sector, predicting a total market size of 130.7 billion yuan by 2025, indicating significant growth potential [9]. Financial Forecasts - Revenue projections for 2024, 2025, and 2026 are estimated at 7.62 billion, 10.16 billion, and 12.70 billion yuan respectively, with corresponding net profits of 580 million, 820 million, and 1.03 billion yuan [9]. - Earnings per share (EPS) are forecasted to be 1.33 yuan for 2024, 1.88 yuan for 2025, and 2.36 yuan for 2026, reflecting a positive trend in profitability [9]. - The price-to-earnings (PE) ratio is expected to decrease from 21 in 2024 to 12 by 2026, indicating an attractive valuation as earnings grow [9].