Topband(002139) Changjiang Securities·2024-08-08 02:01Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The IoT industry has shown significant recovery since the beginning of the year, with downstream replenishment and demand recovery leading to a notable increase in growth rates. The company achieved a revenue growth of 17.85% year-on-year in the first half of 2024 [4][3]. - The company's gross profit margin improved by 2.32 percentage points year-on-year in the first half of 2024, driven by the digestion of high raw material prices and reduced adverse effects from exchange rate fluctuations. The profitability is expected to continue to grow due to the introduction of high-value-added businesses and innovative products [4][3]. - The company has sufficient existing orders and high visibility for the second half of the year, which is expected to maintain stable growth. Forecasted net profits for 2024-2026 are projected to be 751 million, 924 million, and 1.112 billion yuan, representing year-on-year growth of 46%, 23%, and 20%, respectively [4][3]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 5.016 billion yuan, a year-on-year increase of 17.85%. The net profit attributable to the parent company was 389 million yuan, up 50.68% year-on-year, while the net profit excluding non-recurring items was 373 million yuan, an increase of 46.85% year-on-year [3][4]. - In the second quarter of 2024, the company recorded a revenue of 2.698 billion yuan, marking a new high for quarterly revenue, with a quarter-on-quarter growth of 16.37% and a year-on-year growth of 19.31% [3][4]. Business Segments - The tools segment achieved a revenue of 1.959 billion yuan, a year-on-year increase of 20.90%. The home appliance segment generated 1.773 billion yuan, up 18.15% year-on-year. The new energy segment grew by 13.74%, and the industrial control segment saw a growth of 13.82% [6]. - The overseas production bases in Vietnam, India, Mexico, and Romania generated a combined revenue of 1.011 billion yuan, a year-on-year increase of 72.65%, with overseas revenue accounting for 20.16% of total revenue [4][6]. Profitability - The gross profit margin for the first half of 2024 was 23.90%, an increase of 2.32 percentage points year-on-year. The net profit margin for the second quarter was 8.00%, up 0.84 percentage points year-on-year [6]. - The company has effectively controlled costs, with a significant reduction in expense ratios across various categories, contributing to improved profitability [6].