Wuxi Best Precision Machinery (300580) 申万宏源·2024-08-09 13:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [3][4]. Core Insights - The company reported stable growth in Q2 2024, with revenue reaching 354 million yuan, a year-on-year increase of 9.0%, and a net profit of 74 million yuan, reflecting a year-on-year growth of 7.6% [3][4]. - The company achieved a total revenue of 697 million yuan in H1 2024, up 10.1% year-on-year, and a net profit of 144 million yuan, up 10.9% year-on-year [3][4]. - The company is focusing on expanding its production capacity and global presence, with significant investments in overseas production bases, particularly in Thailand [4]. Financial Performance - In H1 2024, the company generated revenue of 697 million yuan, with the automotive parts segment contributing 629 million yuan, a growth of 8.14% year-on-year [4]. - The overall gross margin for H1 2024 was 34.8%, an increase of 1.4 percentage points year-on-year, while the net profit margin was 20.6%, a slight increase of 0.1 percentage points [4]. - The company expects to achieve net profits of 331 million yuan, 431 million yuan, and 515 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding growth rates of 25.5%, 30.4%, and 19.3% [5]. Strategic Development - The company is actively pursuing a three-tier growth strategy, focusing on traditional turbocharger components, expanding into new energy vehicle parts, and developing linear motion components [4]. - The establishment of subsidiaries and acquisitions, such as Suzhou Hebes and Anhui Best New Energy, are part of the company's strategy to enhance its capabilities in the new energy sector [4]. - The company has successfully developed high-precision linear motion components, which are gaining market recognition and are expected to contribute to future growth [4].