FORYOU(SZ:002906) Soochow Securities·2024-08-20 17:36Investment Rating - The report maintains a "Buy" rating for Huayang Group [1] Core Views - The company reported a revenue of 4.19 billion yuan in the first half of 2024, a year-on-year increase of 46%, and a net profit attributable to shareholders of 290 million yuan, up 58% year-on-year [2] - In Q2 2024, the company achieved a revenue of 2.2 billion yuan, with a quarter-on-quarter increase of 42% and a year-on-year increase of 11%, while the net profit attributable to shareholders was 145 million yuan, reflecting a quarter-on-quarter increase of 39% and a year-on-year increase of 2% [2] - The automotive electronics segment saw significant growth, with revenue reaching 3.1 billion yuan in H1 2024, a 65% increase year-on-year, while precision die-casting revenue was 900 million yuan, up 24% year-on-year [2] - New product launches and customer acquisitions are driving revenue growth, with notable clients including Volkswagen, FAW Toyota, and BYD [2] - The gross margin for Q2 2024 was 21.9%, showing a slight improvement due to the ramp-up of new product capacity [3] - The report forecasts revenue for 2024-2026 to be 90.3 billion yuan, 112.3 billion yuan, and 132.8 billion yuan, respectively, with year-on-year growth rates of 27%, 24%, and 18% [3] Summary by Sections Financial Performance - Total revenue for 2022 was 5.638 billion yuan, increasing to 7.137 billion yuan in 2023, with projections of 9.033 billion yuan for 2024 [1] - Net profit attributable to shareholders was 380.46 million yuan in 2022, expected to rise to 652.36 million yuan in 2024, reflecting a year-on-year growth of 40.35% [1] - The latest diluted EPS is projected to be 1.24 yuan per share in 2024, with a P/E ratio of 18.88 [1] Cost Management - The company has effectively controlled expenses, with a period expense ratio of 13.9% in Q2 2024, down 0.9 percentage points year-on-year [3] - The net profit margin for Q2 2024 was 6.6%, with operational profit margin improving due to effective cost management [3] Market Position - The company is expanding its market presence with new product offerings such as HUD and wireless charging, contributing to revenue growth [2] - The penetration rate in the new energy vehicle sector is expected to continue increasing, supporting stable revenue growth [2]