Mingxin Automotive Leather(SH:605068) Guotou Securities·2024-08-20 06:38Investment Rating - The investment rating for the company is "Buy-A" with a target price of 17.5 CNY per share [2][3]. Core Views - The company reported a revenue of 466 million CNY for the first half of 2024, representing a year-on-year growth of 26.36%, while the net profit attributable to shareholders decreased by 39.89% to 10 million CNY [2]. - The company's Q2 2024 revenue was 242 million CNY, showing a year-on-year increase of 10.14% and a quarter-on-quarter increase of 8.07%, despite challenges from traditional clients [2][3]. - The report highlights four core factors driving future high growth: optimization of customer structure in leather business, significant market potential in suede microfiber, expansion into other interior materials, and globalization of operations [3]. Financial Performance Summary - The company’s Q2 2024 gross margin was 27.78%, a slight decrease of 0.78 percentage points year-on-year but an increase of 0.34 percentage points quarter-on-quarter [2]. - The company’s total market capitalization is approximately 2.06 billion CNY, with a circulating market capitalization of about 2.05 billion CNY [2]. - The projected net profits for 2024, 2025, and 2026 are 50 million CNY, 110 million CNY, and 180 million CNY respectively, with corresponding PE ratios of 44.9, 18.1, and 11.4 [3][5].