NJEC(600699) 西南证券·2024-08-23 02:30Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 13.82 CNY and a target price not specified for the next six months [1]. Core Insights - The company reported a significant recovery in its safety business performance and is deeply engaged in automotive intelligence [2]. - In the first half of 2024, the company achieved a revenue of 27.079 billion CNY, a year-on-year increase of 0.24%, and a net profit attributable to shareholders of 637 million CNY, up 33.91% year-on-year [2]. - The automotive safety business showed a notable recovery, with revenues of 18.765 billion CNY, a slight increase of 0.02% year-on-year, and a net profit of 326 million CNY, a substantial increase of 3416.2% year-on-year [2]. - The company secured new orders totaling approximately 50.4 billion CNY in the first half of 2024, representing a year-on-year increase of 19.4%, with over 60% of these orders related to new energy vehicles [3]. - The company is actively advancing its smart driving and automotive safety solutions, including the development of innovative safety products and participation in industry standards [3]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 27.079 billion CNY, with a gross margin of approximately 15.58%, an increase of 2.14% year-on-year [2]. - The automotive safety segment's gross margin improved to 13.94%, up 3.29% year-on-year, while the automotive electronics segment's gross margin was 19.37%, down 0.5% year-on-year [2]. Business Segments - The automotive safety business generated revenues of 18.765 billion CNY, while the automotive electronics business generated 8.134 billion CNY, a slight decline of 0.22% year-on-year [2]. - The company has implemented cost reduction and efficiency improvement measures, leading to a significant enhancement in overall profitability [2]. Market Position and Strategy - The company has strengthened its partnerships with domestic brands and new energy vehicle manufacturers, with new orders from these sectors accounting for a significant portion of total orders [3]. - The company is focusing on smart vehicle technology, including intelligent cockpit development and V2X product applications, to enhance its competitive edge in the automotive market [3]. Future Outlook - The company forecasts net profits of 1.52 billion CNY, 1.91 billion CNY, and 2.36 billion CNY for 2024, 2025, and 2026 respectively, with a compound annual growth rate (CAGR) of 29.7% [6]. - The earnings per share (EPS) are projected to be 1.08 CNY, 1.36 CNY, and 1.68 CNY for the same years, with corresponding price-to-earnings (PE) ratios of 13, 10, and 8 [6].