Investment Rating - The report assigns a "Buy" rating for the company with a target price of 4.0 HKD, indicating a potential upside of 68% from the current price of 2.4 HKD as of August 15, 2024 [4][2]. Core Insights - The company's revenue for the first half of 2024 reached 2.1 billion USD, remaining flat year-on-year, while net profit significantly declined by 54% to 15.69 million USD due to project cancellations leading to impairment of intangible assets and increased tax expenses [2][1]. - The Asia-Pacific market is performing well, with a 9.3% year-on-year revenue increase, while North America is under pressure with a 6.3% decline [2][1]. - The company secured new orders worth 2.1 billion USD in the first half of 2024, with 49% from North America and 46% from the Asia-Pacific region, indicating strong demand, particularly from Chinese automakers [2][1]. Summary by Sections Financial Performance - Revenue for 2024 is projected to be 4.36 billion USD, with a growth rate of 3.7% year-on-year, while net profit is expected to rebound to 0.8 billion USD, reflecting a growth rate of 108.1% [2][3]. - The company experienced a significant drop in net profit in 2023, with a forecasted recovery in subsequent years [8][7]. Market Analysis - The report highlights the strong growth potential in the Chinese market, particularly with the upcoming launch of the Changshu factory in 2025, which is expected to accelerate business development [2][1]. - The report notes that 43% of new orders in the first half of 2024 came from Chinese vehicle manufacturers, showcasing deepening partnerships in the region [2][1]. Financial Projections - The company’s projected financials indicate a gradual increase in revenue and net profit over the next few years, with expected revenues of 4.36 billion USD in 2024, 4.65 billion USD in 2025, and 5.00 billion USD in 2026 [7][8]. - The net profit margin is expected to improve, with net profit projected to reach 2.1 billion USD by 2026, reflecting a growth rate of 37.1% [2][3].
耐世特：上半年业绩低於预期，中国市场发展良好