Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has released a positive profit forecast, expecting a net profit of $60-65 million for the first half of 2024, representing a year-on-year growth of 22-33% compared to $49 million in the same period of 2023 [2] - Strong demand for lawn mowers has been observed, with significant growth in shipments from channel companies. The revenue growth in the first half of the year is attributed to favorable spring weather, increased brand influence of the EGO lithium battery lawn mower, and accelerated inventory replenishment by channels [2] - The company's profitability is expected to improve due to increased order volumes leading to higher capacity utilization, optimized operating expenses, and favorable external factors such as improved currency exchange rates and lower raw material costs [2] - The company is confident in achieving its annual sales growth target of 15-20%, supported by positive trends in profit, cash flow, and financial conditions in the first half of 2024 [2] - As a leading brand in lithium battery lawn mowers, the company is expected to benefit from inventory replenishment and potential interest rate cuts, leading to sustained performance recovery [2] Financial Projections - The company is projected to achieve revenues of $1.526 billion, $1.753 billion, and $1.964 billion for the years 2024, 2025, and 2026 respectively, with net profits of $90 million, $133 million, and $151 million for the same years [2][4] - The expected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 13, 9, and 8 times respectively [2] - The company's revenue growth rate is forecasted to be 11% in 2024, 14.86% in 2025, and 12.05% in 2026 [4][5] - The return on equity (ROE) is expected to improve from -3.87% in 2023 to 8.19% in 2024, and further to 10.13% in 2025 [5]
泉峰控股：终端销售增长强劲，2024H1业绩超预期