SUNWODA(SZ:300207) Huaxin Securities·2024-07-17 09:30Investment Rating - The report assigns a "Buy" rating for the company [3][6] Core Insights - The company reported strong second-quarter performance, significantly exceeding market expectations [3] - The power business is expected to continue expanding, with a gradual path to profitability [3] - The company is enhancing its global presence with plans to establish a subsidiary in Vietnam for lithium battery production, marking its second overseas factory after India [3] - The consumer battery segment showed impressive performance, driven by a recovery in demand for consumer electronics [3] - The company anticipates a substantial increase in net profit for the first half of 2024, with projections of 767-899 million yuan, representing a year-on-year growth of 75%-105% [3] Financial Performance Summary - The company expects to achieve a net profit of 450-580 million yuan in Q2 2024, a year-on-year decrease of 4%-26%, but a quarter-on-quarter increase of 41%-82% [3] - The net profit forecast for 2024, 2025, and 2026 is 1.6 billion, 2.1 billion, and 2.4 billion yuan respectively, with corresponding EPS of 0.87, 1.12, and 1.29 yuan [6] - The company’s revenue for 2024 is projected to be 56.24 billion yuan, with a growth rate of 17.5% [8] Business Strategy and Market Position - The company is actively pursuing a global strategy for its power battery business, with plans for production bases in Hungary and Morocco [3] - The customer base for the power battery business includes major domestic and international automotive manufacturers, enhancing its market position [3] - The company has implemented an equity incentive plan to motivate employees, aiming for a revenue target of no less than 55 billion yuan in 2024 [5]