FYG,FUYAO GLASS(600660) 民生证券·2024-08-07 02:31Investment Rating - Maintain "Recommend" rating with a target price of 42.87 RMB [2] Core Views - The company's 2024H1 revenue reached 18.34 billion RMB, a YoY increase of 22.01%, with net profit attributable to the parent company at 3.499 billion RMB, up 23.35% YoY [1] - The company's 2024Q2 revenue hit a record high of 9.504 billion RMB, a YoY increase of 19.12%, with net profit attributable to the parent company reaching 2.111 billion RMB, up 9.86% YoY [1] - The company's gross margin in 2024Q2 was 37.7%, up 2.8 percentage points YoY, driven by lower costs of soda ash and natural gas [1] - The company's global market share in the automotive glass industry is approximately 30%, making it the global leader [1] - The company's high-value-added products, such as smart panoramic sunroof glass and HUD glass, continue to increase their revenue share, contributing to higher profitability [1] Financial Performance - The company's 2024H1 revenue was 18.34 billion RMB, with a YoY growth of 22.01%, and net profit attributable to the parent company was 3.499 billion RMB, up 23.35% YoY [1] - In 2024Q2, the company's revenue was 9.504 billion RMB, a YoY increase of 19.12%, and net profit attributable to the parent company was 2.111 billion RMB, up 9.86% YoY [1] - The company's gross margin in 2024Q2 was 37.7%, up 2.8 percentage points YoY, driven by lower costs of soda ash and natural gas [1] - The company's R&D expenses in 2024Q2 were 410 million RMB, a YoY increase of 24.7%, with the R&D expense ratio rising by 0.2 percentage points to 4.3% [1] Industry and Market Position - The company holds a domestic market share of over 70% and a global market share of approximately 30% in the automotive glass industry [1] - The company has a strong vertical integration capability in the float glass and silica sand supply chain, which contributes to its excellent profitability [1] - The company's high-value-added products, such as smart panoramic sunroof glass and HUD glass, are benefiting from the increasing penetration of smart and electric vehicles [3] Future Outlook - The company's global layout is entering a harvest period, with its global market share expected to increase further [3] - The company's high-value-added automotive glass products are gradually gaining traction, and the profitability of its SAM subsidiary is expected to improve [3] - The company's revenue for 2024-2026 is forecasted to be 39.931 billion RMB, 46.635 billion RMB, and 53.692 billion RMB, respectively, with net profit attributable to the parent company expected to be 7.243 billion RMB, 8.599 billion RMB, and 9.943 billion RMB [3] Financial Projections - The company's revenue for 2024-2026 is projected to be 39.931 billion RMB, 46.635 billion RMB, and 53.692 billion RMB, respectively [4] - The net profit attributable to the parent company for 2024-2026 is expected to be 7.243 billion RMB, 8.599 billion RMB, and 9.943 billion RMB, respectively [4] - The EPS for 2024-2026 is forecasted to be 2.78 RMB, 3.29 RMB, and 3.81 RMB, respectively [4] - The PE ratios for 2024-2026 are projected to be 15x, 13x, and 11x, respectively [4]