FORYOU(SZ:002906) Haitong Securities·2024-08-22 00:39Investment Rating - The investment rating for Huayang Group is "Outperform the Market" [2] Core Views - The company achieved significant growth in revenue and net profit in the first half of 2024, with revenue reaching 4.193 billion yuan, a year-on-year increase of 46.23%, and net profit of 287 million yuan, up 57.89% year-on-year [6][7] - The company has made substantial progress in order acquisition and new product development, expanding its customer base and securing projects with major domestic and international automotive clients [7] - The forecast for net profit from 2024 to 2026 is 660 million yuan, 877 million yuan, and 1.148 billion yuan respectively, with corresponding EPS of 1.26 yuan, 1.67 yuan, and 2.19 yuan [6][10] Financial Performance - In Q2 2024, the company reported revenue of 2.203 billion yuan, a year-on-year increase of 41.89% and a quarter-on-quarter increase of 10.64% [6] - The gross margin for the first half of 2024 was 21.76%, slightly down by 0.47 percentage points year-on-year, while the net margin improved to 6.90%, up 0.48 percentage points year-on-year [6] - The company’s revenue is projected to grow from 7.137 billion yuan in 2023 to 9.258 billion yuan in 2024, representing a year-on-year growth rate of 29.7% [8][10] Order Acquisition and Product Development - The automotive electronics segment saw revenue of 3.071 billion yuan in the first half of 2024, a 65.41% increase year-on-year, while precision die-casting revenue reached 914 million yuan, up 23.55% year-on-year [6][8] - The company has expanded its order book significantly, securing projects with clients such as Stellantis, Changan Mazda, and BYD, among others [7] - R&D investment in the first half of 2024 was 373 million yuan, a 25.57% increase year-on-year, accounting for 8.90% of revenue [7] Valuation and Investment Suggestion - The estimated reasonable value range for the stock is between 26.46 yuan and 31.5 yuan, based on a PE ratio of 21-25 times for innovative automotive electronic products [7] - The company is expected to maintain a strong growth trajectory, supported by new orders and product innovations [7]