Azure(SZ:002245) Guoxin Securities·2024-08-08 02:03Investment Rating - The investment rating for the company is "Outperform the Market" [4][11]. Core Views - The company achieved a net profit attributable to shareholders of 167 million yuan in H1 2024, representing a year-on-year increase of 302%. Revenue for the same period was 3.065 billion yuan, up 36% year-on-year, with a gross margin of 15.03%, an increase of 1.83 percentage points [6][10]. - The company's lithium battery shipments have steadily increased, with significant recovery in profitability. In H1 2024, the lithium battery business generated revenue of 1.106 billion yuan, a year-on-year increase of 79%. The estimated shipment volume for H1 2024 was approximately 175 million units, up over 115% year-on-year [10][11]. - The company is advancing its global strategy, with the factory project in Malaysia expected to be completed in May 2024 and production anticipated to start in 2025. The overseas business team is also expanding, with new offices established in Malaysia and India [10]. Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of 1.636 billion yuan, a year-on-year increase of 28% and a quarter-on-quarter increase of 14%. The net profit attributable to shareholders was 97 million yuan, up 78% year-on-year and 37% quarter-on-quarter, with a gross margin of 15.69% [6][10]. - The company’s gross margin for the lithium battery business in H1 2024 was 15.13%, an increase of 8.55 percentage points year-on-year, indicating a significant recovery in profitability due to improved capacity utilization [10]. Business Segments - The LED business generated revenue of 751 million yuan in H1 2024, a year-on-year increase of 25%, with a gross margin of 15.86%, up 1.18 percentage points. The company successfully entered the supply chain of major global clients in the MiniLED and automotive lighting markets [10]. - The metal logistics business achieved revenue of 1.157 billion yuan in H1 2024, a year-on-year increase of 14%, with a gross margin of 14.50%, down 1.83 percentage points [10]. Profit Forecasts - The profit forecast for the company has been adjusted downwards due to short-term negative impacts on profitability from order structure. The expected net profits for 2024-2026 are 432 million yuan, 565 million yuan, and 657 million yuan, respectively, with year-on-year growth rates of 207%, 31%, and 16% [10][11].