RAYHOO MOTOR DIES(SZ:002997) ZHONGTAI SECURITIES·2024-07-12 06:31Investment Rating - The investment rating for the company is "Buy" with a target price of 34.73 CNY, indicating an expected relative increase of 5% to 15% over the next 6 to 12 months compared to the benchmark index [1][8]. Core Insights - The company is expected to maintain strong performance in Q2, driven by both equipment and component segments, with a forecasted net profit for the first half of 2024 between 154 million to 170 million CNY, representing a year-on-year growth of 70.76% to 88.51% [4][11]. - The equipment business continues to expand, with a backlog of orders amounting to 3.419 billion CNY, a 12.84% increase from the previous year, indicating robust growth in both domestic and international markets [20]. - The lightweight components segment has entered mass production, contributing significantly to revenue growth, with expected revenues of 290 million CNY in 2023, up from 14 million CNY in 2022, and further growth anticipated in 2024 [20][22]. Financial Performance Summary - Revenue projections show a significant increase from 1,168 million CNY in 2022 to an estimated 2,796 million CNY in 2024, reflecting a year-on-year growth rate of 61% [10]. - Net profit is forecasted to grow from 140 million CNY in 2022 to 337 million CNY in 2024, with a year-on-year growth rate of 67% [10]. - Earnings per share (EPS) is expected to rise from 0.67 CNY in 2022 to 1.61 CNY in 2024, indicating strong profitability growth [10]. Investment Opportunities - The company is positioned to benefit from strong demand from major clients, particularly in the lightweight components sector, which is expected to drive significant revenue and profit growth in the coming years [20][22]. - Investment income from joint ventures is also projected to enhance overall profitability, with a confirmed investment income of 61 million CNY in 2023, up 120% year-on-year [20].