BIYI(SH:603215) Guotou Securities·2024-08-11 03:30Investment Rating - The investment rating for the company is maintained at "Buy - A" with a target price of 16.51 CNY for the next six months, based on a price-to-earnings ratio of 15 times for 2024 [3][10]. Core Insights - The company reported a revenue of 860 million CNY for H1 2024, reflecting a year-on-year increase of 1.1%. The net profit attributable to shareholders was 70 million CNY, down 46.5% year-on-year. In Q2 alone, revenue reached 540 million CNY, up 14.3% year-on-year, while net profit was 60 million CNY, down 28.3% year-on-year [1][3]. - The recovery in revenue during Q2 is attributed to improved export conditions for kitchen small appliances, with a 20% year-on-year increase in exports of heating kitchen appliances in China. The company has also seen stable production and delivery from major clients like Philips and others [1][3]. - Despite the revenue growth, the company's profitability declined, with a net profit margin of 10.7% in Q2, down 6.4 percentage points year-on-year. This decline is attributed to reduced foreign exchange gains and increased financial expenses [1][3]. - The company is positioned in the first tier of the heating kitchen appliance OEM industry, with strong R&D, cost control, and production capabilities. It has been expanding its client base to include well-known brands and is entering new markets such as coffee machines [1][3]. Financial Summary - The company expects its earnings per share (EPS) to be 1.10 CNY, 1.19 CNY, and 1.29 CNY for the years 2024, 2025, and 2026, respectively [1][4]. - Revenue projections for the upcoming years are 1.7 billion CNY in 2024, 1.87 billion CNY in 2025, and 2.05 billion CNY in 2026, indicating a steady growth trajectory [4][9]. - The company's net profit is projected to be 200 million CNY in 2024, increasing to 240 million CNY by 2026 [4][9].