KDL(SZ:002850) Huajin Securities·2024-08-22 09:30Investment Rating - The report maintains an investment rating of "Buy-A" for the company, with a target price of 70.22 CNY [1][4]. Core Insights - The company has demonstrated stable profitability and is steadily advancing its overseas expansion, particularly in the lithium battery structural components sector [1][4]. - The company reported a total revenue of 5.446 billion CNY for the first half of 2024, representing a year-on-year increase of 10.75%, and a net profit attributable to shareholders of 648 million CNY, up 27.38% year-on-year [1][4]. - The gross margin for Q2 2024 was 23.82%, showing a slight increase compared to the previous year, attributed to product structure optimization and cost reduction measures [1][4]. Financial Performance - The company’s revenue for Q2 2024 reached 2.937 billion CNY, reflecting a year-on-year growth of 13.35% and a quarter-on-quarter increase of 17.11% [1][4]. - The net profit for Q2 2024 was 339 million CNY, which is a 27.03% increase year-on-year and a 10.02% increase quarter-on-quarter [1][4]. - Research and development (R&D) expenses amounted to 293 million CNY in the reporting period, marking a 13.41% increase year-on-year, indicating a commitment to innovation and product development [1][4]. Market Expansion - The company is establishing a production base in the United States, which is expected to begin releasing capacity next year, enhancing its presence in the overseas market [1][4]. - The overseas revenue for the first half of 2024 was 295 million CNY, accounting for 5.42% of total revenue, indicating the company's growing international footprint [1][4]. Future Projections - The report projects the company's net profit attributable to shareholders to be 1.381 billion CNY, 1.652 billion CNY, and 1.989 billion CNY for the years 2024, 2025, and 2026 respectively, reflecting an upward revision from previous estimates [4][5]. - The expected price-to-earnings (P/E) ratios for the same years are 13.8, 11.5, and 9.6 times, suggesting a favorable valuation outlook [4][5].