ANHUI ZHONGDING(000887) 华泰证券·2024-07-16 01:02Investment Rating - The report maintains a "Buy" rating for Zhongding Sealing Parts (000887 CH) with a target price of RMB 16.94, up from the previous target of RMB 15.62 [3][10] Core Views - The company's H1 2024 net profit attributable to shareholders is expected to be RMB 690-750 million, representing a YoY growth of 29.9%-41.2% [3] - The Q2 2024 net profit is projected to be RMB 330-390 million, with a YoY increase of 22%-45% [5] - The company's air suspension business has secured orders worth approximately RMB 12.1 billion by the end of 2023 [5] - The cooling system business has accumulated orders of about RMB 12 billion in 2023, with a new order worth RMB 85 million secured in June 2024 [6] Financial Performance - The company's revenue is expected to grow from RMB 17.244 billion in 2023 to RMB 25.952 billion in 2026, with a CAGR of 14.7% [9] - Net profit attributable to shareholders is forecasted to increase from RMB 1.131 billion in 2023 to RMB 2.205 billion in 2026, with a CAGR of 25.1% [9] - The ROE is projected to improve from 9.20% in 2023 to 12.99% in 2026 [9] Business Development - The company has accelerated the localization of AMK's production line in Anhui, leading to improved profitability in the air suspension system [5] - Zhongding is expanding its product portfolio in the cooling system, including liquid cooling units for energy storage and immersion cooling units for supercomputing centers [6] - The company is actively building factories in Slovakia and Mexico to accelerate its overseas lightweight business expansion [6] Valuation - The report assigns a 2024E PE of 15.4x, higher than the industry average of 12.8x, reflecting the company's growth potential [3] - The company's 2024E EV/EBITDA is 7.44x, lower than the 2023 figure of 8.83x, indicating improving valuation metrics [9]