Topband(SZ:002139) Great Wall Securities·2024-08-04 02:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [10]. Core Views - The company has shown impressive performance in Q2 2024, with a revenue of 5.016 billion yuan, representing a year-on-year increase of 17.85%, and a net profit attributable to shareholders of 389 million yuan, up 50.68% year-on-year [2][5]. - The overall industry is experiencing a recovery in demand, contributing to the company's growth, alongside cost reduction and efficiency improvements in existing businesses, as well as innovations in new technologies [2][3]. Financial Performance - For H1 2024, the company achieved a revenue of 5.016 billion yuan, with a net profit of 389 million yuan, marking significant growth compared to the previous year [2]. - In Q2 alone, the company reached a record quarterly revenue of 2.698 billion yuan, reflecting a quarter-on-quarter growth of 16.37% and a year-on-year growth of 19.31% [2]. - The gross margin for H1 2024 was reported at 23.90%, an increase of 2.32 percentage points year-on-year, while the net profit margin improved to 7.77%, up 1.7 percentage points year-on-year [3]. Business Segments - The company's tool business generated 1.959 billion yuan in revenue, up 20.90% year-on-year, with a gross margin of 24.62% [2]. - The home appliance segment reported revenue of 1.773 billion yuan, an 18.15% increase year-on-year, benefiting from inventory digestion and industry recovery [2]. - The new energy segment achieved revenue of 1.040 billion yuan, with storage and new energy vehicle businesses contributing significantly [2]. - The industrial control segment generated 156 million yuan, with servo product sales increasing by over 30% year-on-year [2]. Profitability and Cost Management - The company has effectively managed its costs, with total expenses increasing by approximately 0.98 billion yuan year-on-year, primarily due to investments in new businesses and markets [5]. - Research and development expenses decreased by 43% year-on-year, indicating a focus on efficiency [5]. Cash Flow and Inventory Management - The operating cash flow for Q2 was 371 million yuan, a significant increase of 272.82% quarter-on-quarter, reflecting improved operational efficiency [5]. - The inventory turnover rate for H1 2024 was 2.18, up 0.4 year-on-year, indicating better inventory management [5].