Azure(SZ:002245) Southwest Securities·2024-07-25 02:30Investment Rating - The report maintains a "Hold" rating for the company [3][6]. Core Views - The company's lithium battery business showed strong growth in the first half of 2024, with revenue reaching approximately 1.106 billion, a year-on-year increase of 78.71% [2]. - The company aims to ship 1.5 billion units in the third quarter, indicating a steady increase in output [2]. - The overall revenue for the first half of 2024 was nearly 3.065 billion, representing a year-on-year growth of 36.19%, with a net profit of 167 million, up 301.74% year-on-year [3]. - The company is expected to achieve annual shipments between 400 million and 450 million units, as inventory levels normalize and demand from the power tool sales season increases [4]. - New application scenarios such as BBU modules, eVTOL, and AI robots are expected to support the expansion of the overall market capacity [5]. Financial Summary - The company achieved a revenue of approximately 3.065 billion in the first half of 2024, with a net profit of 167 million, reflecting a significant increase compared to the previous year [3]. - The second quarter of 2024 saw revenue of 1.636 billion, a quarter-on-quarter increase of 14.44%, with a net profit of 97 million, up 36.78% quarter-on-quarter [3]. - The forecast for net profit from 2024 to 2026 is 442 million, 554 million, and 680 million respectively, indicating a strong recovery trajectory [6]. - The company’s revenue is projected to grow from 5.221 billion in 2024 to 9.728 billion in 2026, with corresponding net profits increasing significantly [7]. Market Outlook - The company is expanding its overseas production capabilities, particularly in Malaysia, to cater to sensitive overseas clients and the Southeast Asian electric motorcycle market [19]. - The LED and metal logistics businesses are also performing well, with LED revenue reaching approximately 751 million in the first half of 2024, a year-on-year increase of 24.7% [19].