RAYHOO MOTOR DIES(SZ:002997) Haitong Securities·2024-08-21 07:38Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Insights - The company reported a significant revenue increase of 30.5% year-on-year, reaching 1.12 billion yuan in H1 2024, and a net profit attributable to shareholders of 160 million yuan, which is a 79.4% increase year-on-year [3][4] - The growth in revenue is attributed to an increase in orders for manufacturing equipment and a rise in production volume of automotive parts [4] - The company has a strong order backlog, with contract liabilities amounting to approximately 1.5 billion yuan as of June 2024, indicating strong revenue visibility [4] Revenue and Profitability - The company expects to achieve revenues of 2.68 billion yuan, 3.73 billion yuan, and 4.48 billion yuan for the years 2024, 2025, and 2026 respectively, with net profits projected at 350 million yuan, 439 million yuan, and 554 million yuan for the same years [5][7] - The earnings per share (EPS) are forecasted to be 1.67 yuan, 2.10 yuan, and 2.65 yuan for 2024, 2025, and 2026 respectively [5][7] Cost and Expense Management - Sales expenses decreased by 40% year-on-year in H1 2024, primarily due to the inclusion of after-sales service costs in operating costs [3] - Management expenses increased by 51.6% year-on-year, mainly due to higher personnel costs and asset depreciation [3] Market Position and Competitive Advantage - The company is one of the few in China capable of providing complete high-end manufacturing equipment for automotive body structures, along with intelligent manufacturing technology and overall solutions [4] - The automotive parts business is rapidly developing, with multiple models already in mass production and new model projects being continuously undertaken [4] Valuation and Price Target - The company’s stock is currently valued at a price-to-earnings (PE) ratio of 16x for 2024, with a reasonable PE range estimated between 21-23x, corresponding to a fair value range of 35.12 to 38.46 yuan [4]