FORYOU(SZ:002906) Southwest Securities·2024-08-22 10:00Investment Rating - The report maintains a "Buy" rating for Huayang Group (002906) [1][2] Core Views - The company achieved a revenue of 4.193 billion yuan in H1 2024, representing a year-on-year increase of 46.2%, and a net profit of 287 million yuan, up 57.9% year-on-year, aligning with previous performance forecasts [1] - The automotive electronics segment is expanding significantly, with H1 2024 revenue reaching 3.07 billion yuan, a 65.4% increase year-on-year, accounting for 73% of total revenue [1][2] - The company is increasing its R&D investment, with 373 million yuan spent in H1 2024, a 25.6% increase year-on-year, representing 8.9% of total revenue [2] Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of 2.2 billion yuan, a 41.9% increase year-on-year and a 10.6% increase quarter-on-quarter [1] - The gross margin for H1 2024 was 21.8%, down 0.5 percentage points year-on-year, while the net margin was 6.9%, up 0.5 percentage points year-on-year [1] Business Segments - The automotive electronics business is seeing robust growth, with significant orders and new product lines entering mass production, including cockpit domain controllers and digital acoustics [1] - The precision die-casting business also showed steady growth, with revenue of 910 million yuan in H1 2024, a 23.6% increase year-on-year [2] Future Outlook - The company forecasts EPS of 1.20, 1.47, and 1.81 yuan for 2024, 2025, and 2026 respectively, with a projected CAGR of 26.9% for net profit [2][3] - The report indicates ongoing capacity expansion, with new facilities in Huizhou and Zhejiang expected to contribute to future growth [2]