LSKJ(300680) 华龙证券·2024-08-21 08:11Investment Rating - Buy (maintained) [2] Core Views - The company's performance is driven by full order books, with revenue and net profit showing significant year-on-year growth in H1 2024 [2] - The company is expanding into the commercial aerospace sector, which is expected to open up new growth opportunities [2] - The EGR system and motor core businesses are the main drivers of revenue growth, with strong order growth from both existing and new customers [2] Financial Performance - H1 2024 revenue reached 1,060 million yuan, up 44.4% YoY, with net profit attributable to shareholders of 103 million yuan, up 43.6% YoY [2] - Q2 2024 revenue was 495 million yuan, up 25.2% YoY, with net profit attributable to shareholders of 51 million yuan, up 60.8% YoY [2] - Gross margin in Q2 2024 increased by 2.14 pct YoY and 0.88 pct QoQ to 19.47%, driven by economies of scale [2] Business Segments - EGR system business achieved revenue of 354 million yuan in H1 2024, up 43.3% YoY, with strong order growth from BYD, Geely, and Chery [2] - Motor core business achieved revenue of 457 million yuan in H1 2024, up 76.8% YoY, with new customers including Tesla, BYD, and Hefei Junlian [2] Commercial Aerospace Expansion - The company's subsidiary, Weiyan Zhongjia, has extensive experience in national aerospace projects, including Shenzhou, Tianzhou, and Chang'e missions [2] - The company has signed a strategic cooperation agreement with Galaxy Aerospace to supply precision components for energy modules [2] - The company is constructing a third-phase factory, expected to be operational by the end of 2024, to support its aerospace business [2] Financial Forecasts - Forecasted net profit attributable to shareholders for 2024-2026 is 243 million yuan, 336 million yuan, and 410 million yuan, respectively [2] - The current PE ratio is 17.0x for 2024, 12.3x for 2025, and 10.1x for 2026, lower than the industry average [2] Valuation - The company's valuation is lower than comparable companies, with an average PE ratio of 30.8x for 2024, 19.7x for 2025, and 13.0x for 2026 [4]