长虹华意：Q2冰压主业延续增长

Investment Rating - The report maintains a "Buy-A" investment rating for Changhong Huayi, with a target price of 7.39 yuan over the next six months [1]. Core Views - Changhong Huayi's main business in refrigeration continues to grow, despite a decline in overall revenue due to reduced income from raw materials and components, as well as the impact of divesting from the Granbo equity [1]. - The company is expected to benefit from the "old-for-new" subsidy policy in the home appliance sector, which is anticipated to stimulate demand for refrigerator upgrades and compressor sales [1]. - The report forecasts earnings per share (EPS) for 2024, 2025, and 2026 to be 0.62, 0.70, and 0.82 yuan, respectively [1]. Financial Performance Summary - For the first half of 2024, Changhong Huayi reported revenue of 6.73 billion yuan, a year-over-year decrease of 13.0%, and a net profit attributable to shareholders of 230 million yuan, an increase of 37.7% [1]. - In Q2 2024, the company achieved revenue of 3.39 billion yuan, down 3.1% year-over-year, while net profit attributable to shareholders rose by 44.3% to 150 million yuan [1]. - The gross margin for Q2 2024 improved to 12.8%, up 1.5 percentage points year-over-year, despite a decline in the gross margin of the refrigeration compressor business due to price competition [1]. Revenue and Profitability Trends - The report indicates that the company's revenue growth rate is expected to stabilize, with projections showing a gradual recovery in revenue from 2024E to 2026E [4][7]. - The net profit margin for Q2 2024 was reported at 4.3%, an increase of 1.4 percentage points year-over-year, reflecting improved profitability [1]. - Operating cash flow for Q2 2024 was 810 million yuan, a decrease of 17.6% year-over-year, primarily due to lower sales revenue [1]. Market Position and Future Outlook - Changhong Huayi is positioned as a leader in the refrigerator compressor industry and is actively expanding its product structure and customer base both domestically and internationally [1]. - The company is also venturing into the new energy vehicle air conditioning compressor market, which is expected to contribute positively to its performance [1]. - The report highlights that the company’s financial health is expected to improve, with a projected return on equity (ROE) increasing from 9.5% in 2023 to 12.5% by 2026 [4][7].