TOSPO(603303) 中国银河·2024-08-19 00:00Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported a revenue of 2.143 billion yuan for the first half of 2024, a year-on-year decrease of 12.70%, while the net profit attributable to shareholders was 178 million yuan, an increase of 8.05% [2][3]. - The automotive business is steadily developing, with project appointments continuing to expand, reflecting a strong growth trend in the automotive market, particularly in the new energy vehicle sector, which reached a market share of 35.2% in the first half of 2024 [2][3]. - Structural improvements have boosted gross margins, with the gross margin reaching 21.12%, up 3.19 percentage points year-on-year, and a net margin of 8.27%, up 1.53 percentage points year-on-year [2][3]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 1.058 billion yuan, a year-on-year decrease of 21.61%, while the net profit attributable to shareholders was 103 million yuan, an increase of 4.67% [2]. - The company’s sales gross margin for the first half of 2024 was 21.12%, with a net margin of 8.27% [2][3]. - The company’s expenses for sales, management, R&D, and financial costs were 4.09%, 4.70%, 3.99%, and -2.12% respectively, with management expenses increasing due to travel and depreciation costs [2]. Business Development - The automotive business is experiencing robust project appointments, including contracts with major clients such as Yanfeng and NIO, with total project amounts of approximately 75 million yuan and 143 million yuan respectively [3]. - The company is focusing on high-value lighting products and enhancing automation in production, which has led to improved profitability [2][3]. Future Outlook - The company is expected to achieve net profits of 417 million yuan, 466 million yuan, and 511 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.87 yuan, 0.98 yuan, and 1.07 yuan [3][8].