PIVOT AUTO(SZ:301181) Guotou Securities·2024-08-21 23:30Investment Rating - The report maintains a "Buy - A" rating for the company [3][7]. Core Views - The company reported a revenue of 248 million yuan for H1 2024, a decrease of 5.9% year-on-year, and a net profit of 61 million yuan, down 13.64% year-on-year [1]. - The decline in revenue is attributed to a drop in sales from the core customer, FAW-Volkswagen, which saw a 28.12% year-on-year decrease in Q2 2024 [2]. - Despite the challenges, the company is expanding its new energy business and overseas operations, which are expected to drive future growth [3]. Financial Performance Summary - In Q2 2024, the company achieved a revenue of 123 million yuan, down 10.38% year-on-year and 1.53% quarter-on-quarter [2]. - The gross margin for Q2 2024 was 31.07%, a decline of 4.77 percentage points year-on-year [2]. - The net profit for Q2 2024 was 29 million yuan, reflecting a year-on-year decrease of 28.17% [2]. - The company expects net profits of 120 million yuan, 140 million yuan, and 160 million yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 19.2, 17.6, and 14.6 [3]. Growth Drivers - The company is focusing on expanding its nylon pipeline applications in new energy vehicles, which are lightweight and easy to process [3]. - New customer acquisitions in the new energy sector, including partnerships with BYD, Leap Motor, and others, are expected to contribute to revenue growth [3]. - The overseas business is also anticipated to grow, with significant cost advantages and new client acquisitions [3].