Autoliv(ALV) 华创证券·2024-07-31 10:01Investment Rating - The report does not explicitly mention the investment rating for Autoliv (ALV) [1][2][3] Core Views - Autoliv's Q2 2024 revenue was $2.2 billion, up 4% YoY, with China OEM sales in China increasing by 39% YoY [1] - The company expects improved profitability in H2 2024, with adjusted operating margins projected to reach 11%-12% [2][15] - Autoliv plans to reduce indirect headcount by 2,000 in 2024, saving $50 million in related costs [2][15] Financial Performance - Q2 2024 sales were $2.6 billion, up 1% YoY, with operating income of $221 million, up 4% YoY [2][5] - Gross profit was $475 million, up 6% YoY, with a gross margin of 18.2%, up 1.3pp YoY [2][5] - Operating cash flow was $340 million, down $39 million YoY [2][6] - Adjusted EBITDA increased by $11 million YoY [5] Market and Capacity - Sales distribution: Asia 37%, Americas 34%, Europe 29% [2] - China OEM sales accounted for 38% of total China sales, up 39% YoY and 25% QoQ [2][18] - Light vehicle production declined 1% YoY, with strong performance in Japan, other Asian regions, and Europe [2][16] Cost Improvements - Direct labor efficiency improvements and indirect labor reductions contributed to a 0.3pp increase in gross margin YoY and QoQ [2][5] - The company expects to save $50 million in 2024 through headcount reductions [2][15] Customer Collaboration - Autoliv is strengthening partnerships with fast-growing Chinese OEMs and has signed a strategic cooperation agreement with XPeng Huitian [2][16] Shareholder Returns - Over the past 12 months, Autoliv returned approximately $810 million to shareholders through dividends and share repurchases [2][12] - The company has reduced its outstanding shares by nearly 9% since initiating its share repurchase program in 2022 [12] Sustainability - Autoliv is collaborating with the UN Road Safety Fund to enhance motorcycle safety and aims to save 100,000 lives annually [2][13] - The company has eliminated SF6 in steering wheel production and is increasing the use of renewable energy and 100% recycled polyester for airbag cushions [14] Guidance - Autoliv expects organic sales growth of 2% in 2024, with adjusted operating margins of 9.5%-10% and operating cash flow of approximately $1.1 billion [2][15] - The company forecasts a tax rate of around 28% for 2024 [15]