Wuxi Best Precision Machinery (SZ:300580) Shanghai Securities·2024-08-12 09:38Investment Rating - The investment rating for the company is "Buy" (maintained) [3][15]. Core Views - The company reported a revenue of 697 million yuan for the first half of 2024, representing a year-on-year growth of 10.06%, and a net profit attributable to shareholders of 144 million yuan, up 10.86% year-on-year [3][4]. - The company is expanding its production capacity in the new energy vehicle (NEV) parts sector, with a new facility in Anhui province that began operations in May 2024, which is expected to enhance performance as NEV sales continue to grow [5][7]. - The company is also investing in international expansion, having established a production base in Thailand to enhance its global competitiveness and reduce trade friction [6][7]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 354 million yuan, a year-on-year increase of 8.97% and a quarter-on-quarter increase of 3.24%. The net profit for the same quarter was 74 million yuan, a decrease of 2.18% year-on-year [3][4]. - The company’s automotive parts business generated 629 million yuan in revenue, accounting for 90.24% of total revenue, while the intelligent equipment and tooling segment achieved 39 million yuan, growing by 32.08% [4]. Future Projections - Revenue projections for 2024-2026 are 1.576 billion yuan, 1.980 billion yuan, and 2.412 billion yuan, respectively, with year-on-year growth rates of 17.31%, 25.63%, and 21.84% [7][8]. - Net profit projections for the same period are 314 million yuan, 407 million yuan, and 498 million yuan, with corresponding growth rates of 19.07%, 29.80%, and 22.27% [7][8]. Business Expansion - The company is focusing on high-precision components for various applications, including industrial machinery and robotics, which are expected to open new growth avenues [5][7]. - The establishment of the Anhui facility and the investment in Thailand are part of the company's strategy to deepen its market presence and enhance production capabilities in response to growing demand in the NEV sector [5][6].