CHANGHONG HUAYI(SZ:000404) Southwest Securities·2024-08-20 05:07Investment Rating - The investment rating for Changhong Huayi is "Hold" [1] Core Views - The company maintains its leading position in the industry with continuous product structure upgrades [1] - In the first half of 2024, the company achieved revenue of 6.73 billion yuan, a year-on-year decrease of 13%, primarily due to a reduction in raw materials and components sales, as well as the non-consolidation of the Glanbo equity stake [1] - The net profit attributable to shareholders was 230 million yuan, a year-on-year increase of 37.7%, while the net profit after deducting non-recurring gains and losses was 210 million yuan, up 20.4% year-on-year [1] Revenue and Profitability - The company's revenue for Q2 2024 was 3.39 billion yuan, a year-on-year decrease of 3.1%, with a net profit of 150 million yuan, up 44.3% year-on-year [1] - The gross profit margin improved significantly, rising by 1.4 percentage points to 11.4% in the first half of 2024 [1] - The net profit margin increased by 1.6 percentage points to 4.8% due to the improvement in gross profit margin [1] Product Performance - The sales volume of refrigerator compressors increased by 15.8% year-on-year, with a production volume of 42.93 million units, up 16.2% year-on-year [1] - The company achieved revenues of 5.64 billion yuan from refrigerator compressors, 870 million yuan from raw materials and components, and 170 million yuan from new energy vehicle air conditioning compressors, with respective year-on-year changes of +11%, -61%, and +42% [1] Future Outlook - The company is expected to maintain its global leading position in the refrigerator compressor sector and continue to drive product structure upgrades [1] - The earnings per share (EPS) forecast for 2024-2026 is 0.69 yuan, 0.80 yuan, and 0.93 yuan respectively [2]