INDUSTRIAL SECURITIES·2024-08-08 01:31Investment Rating - The report maintains a "Buy" rating for Fuyao Glass [1][5][6] Core Views - In the first half of 2024, the company achieved revenue of 18.34 billion yuan, a year-on-year increase of 22.01%, with net profit attributable to shareholders reaching 3.499 billion yuan, up 23.35% year-on-year [1][3] - The second quarter of 2024 saw revenue of 9.504 billion yuan, with a quarter-on-quarter increase of 19.12% and a year-on-year increase of 7.56% [1][3] - The company's performance growth significantly outpaced the automotive industry's production growth, attributed to an increase in global market share and a higher proportion of high-value-added products [4][5] Financial Summary - Revenue (in million yuan) for 2023, 2024E, 2025E, and 2026E is projected at 33,161, 39,087, 44,810, and 50,768 respectively, with year-on-year growth rates of 18.0%, 17.9%, 14.6%, and 13.3% [1][12] - Net profit attributable to shareholders (in million yuan) is expected to be 5,629, 7,530, 8,834, and 10,142 for the same years, with growth rates of 18.4%, 33.8%, 17.3%, and 14.8% [1][12] - The overall gross margin for the first half of 2024 was 36.7%, with a gross margin of 37.7% in Q2 2024, reflecting improvements in product mix and cost reductions [4][5] Market Performance - Fuyao Glass's U.S. subsidiary reported a revenue of 3.36 billion yuan in the first half of 2024, a year-on-year increase of 32.1%, with net profit doubling to 390 million yuan [4][5] - The company is expected to continue benefiting from product structure upgrades, market share expansion, and stable or declining costs, leading to improved profitability [5][6]