Great Wall Securities·2024-08-07 13:01Investment Rating - The report maintains a rating of "Accumulate" for Fuyao Glass [5] Core Views - In 1H24, Fuyao Glass achieved revenue of 18.34 billion, a year-on-year increase of 22.0%, and a net profit attributable to shareholders of 3.499 billion, up 23.4% year-on-year [1][3] - The company's gross margin in 2Q24 reached 37.7%, benefiting from lower raw material costs and improved product mix, leading to a record high profit for the quarter [4][9] - The company is expected to continue its growth trajectory with projected revenues of 40.02 billion, 48.18 billion, and 55.96 billion for 2024, 2025, and 2026 respectively, alongside net profits of 6.995 billion, 8.575 billion, and 9.793 billion [9] Revenue Summary - Fuyao Glass's revenue in 1H24 was 183.40 billion, outperforming the industry average growth of 3.5% in global automotive sales [3] - The revenue from automotive glass and float glass in 1H24 was 168.20 billion and 27.84 billion respectively, with year-on-year growth of 25.8% and 8.4% [3] Profit Summary - The gross margin for 2Q24 was 37.7%, an increase of 2.8 percentage points year-on-year, driven by scale effects and cost reductions in raw materials [4] - The net profit for 2Q24 was 2.111 billion, with a year-on-year increase of 9.8% and a quarter-on-quarter increase of 52.1% [1][4] Capacity Expansion and Product Upgrade - The company is accelerating capacity expansion with capital expenditures of 2.346 billion in 1H24, aiming to enhance market share, particularly in the U.S. market [9] - The proportion of high-value-added products, such as smart panoramic sunroof glass, is increasing, contributing to the company's growth strategy [9]