Wuxi Best Precision Machinery (SZ:300580) Minsheng Securities·2024-08-08 03:00Investment Rating - The report maintains a "Recommended" rating for the company with a current price of 14.78 CNY and a target price not specified [1][4]. Core Insights - The company reported a revenue of 697 million CNY for H1 2024, representing a year-on-year increase of 10.06%, and a net profit attributable to shareholders of 144 million CNY, up 10.86% year-on-year [2]. - The company is focusing on a three-tier development strategy to enhance future growth, with stable revenue growth and ongoing cost reduction and efficiency improvement initiatives [2][4]. - The first-tier industry, which includes core components of turbochargers and precision parts, continues to strengthen the company's competitive position [2]. - The second-tier industry, represented by the newly established Anhui Best New Energy Parts Co., Ltd., is aimed at lightweight components for new energy vehicles and has commenced operations [2]. - The third-tier industry, focusing on linear motion components, is expanding its application areas, with products already recognized in the market [2]. Financial Performance Summary - For Q2 2024, the company achieved a revenue of 354 million CNY, a year-on-year increase of 8.97% and a quarter-on-quarter increase of 3.24% [2]. - The gross profit margin for Q2 2024 was 34.18%, showing a decrease of 1.80 percentage points year-on-year [2]. - The company expects revenues of 1.596 billion CNY, 2.039 billion CNY, and 2.421 billion CNY for 2024, 2025, and 2026 respectively, with net profits projected at 338 million CNY, 432 million CNY, and 553 million CNY for the same years [4][5].