Intretech(002925) 民生证券·2024-08-22 17:06Investment Rating - The report maintains a "Recommend" rating for the company [4][6] Core Views - The company's core business is showing signs of recovery, and new businesses are gradually gaining traction, indicating promising future prospects [2] - Despite short-term pressure on revenue and profitability due to intensified market competition and delays in new projects, the company is actively laying the groundwork for future growth by securing new projects and clients [3] - The company's UDM intelligent manufacturing business is well-established, and with the successful mass production of electronic cigarette products and the gradual maturity of the supply chain, the company is expected to deeply participate in new product development with clients [4] - The company's automotive electronics business is growing rapidly, with strong potential seen in new products such as smart cockpits and dimming glass controllers [4] Financial Performance and Forecasts - In H1 2024, the company reported revenue of 1.575 billion yuan, a year-on-year decrease of 14.56%, with net profit attributable to the parent company of 136 million yuan, down 33.25% year-on-year [2] - In Q2 2024, revenue was 811 million yuan, a year-on-year decrease of 16.59%, with net profit attributable to the parent company of 80 million yuan, down 34.96% year-on-year [2] - The company's gross profit margin and net profit margin in H1 2024 were 28.43% and 9.2%, respectively, down 2.11 and 2.98 percentage points year-on-year [4] - The company's R&D expenses in Q2 2024 were 85 million yuan, with an R&D expense ratio increase of 1.19 percentage points year-on-year, mainly due to the continuous development of new projects [4] - The company's operating cash flow in Q2 2024 was 110 million yuan, a year-on-year decrease of 46.03%, primarily due to a decline in revenue and extended payment terms from downstream customers [4] - The company's revenue is expected to grow to 3.932 billion yuan in 2024, 5.079 billion yuan in 2025, and 6.464 billion yuan in 2026, with net profit attributable to the parent company forecasted at 461 million yuan, 636 million yuan, and 845 million yuan, respectively [5][8] Business Segments - In H1 2024, the company's innovative consumer electronics, intelligent control components, health environment products, and automotive electronics businesses generated revenues of 476 million yuan, 586 million yuan, 63 million yuan, and 267 million yuan, respectively, accounting for 30.24%, 37.19%, 3.98%, and 16.95% of total revenue [3] - The decline in innovative consumer electronics revenue was mainly due to market competition, delays in new project capacity ramp-up, and the transition between old and new projects [3] - The health environment products segment was negatively impacted by intensified market competition and inventory issues among downstream customers [3] - The automotive electronics business benefited from the rapid increase in the configuration rate of multiple new products and the successful acquisition of project orders from clients such as SAIC Audi and Kode India [3] Future Outlook - The company has secured key new project opportunities in areas such as electronic cigarettes, home engraving machines, electric bicycles, and office and simulation control, and is also making strategic moves in the smart medical field, laying the foundation for growth in the coming years [3] - The company's electronic cigarette business is expected to contribute significantly to future revenue growth, with the company having obtained the "Tobacco Monopoly Production Enterprise License" and successfully achieving mass production of electronic cigarette products [4] - The company's automotive electronics business is expected to continue its rapid growth, driven by new products such as smart cockpits and dimming glass controllers [4] Valuation and Metrics - The company's PE ratio is forecasted to be 18X, 13X, and 10X for 2024, 2025, and 2026, respectively [5][8] - The company's PB ratio is expected to be 1.7X, 1.6X, and 1.5X for 2024, 2025, and 2026, respectively [5][8] - The company's EV/EBITDA ratio is projected to be 11.87X, 8.86X, and 6.86X for 2024, 2025, and 2026, respectively [8]