NJEC(SH:600699) Soochow Securities·2024-08-23 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 mid-year report shows that the performance meets expectations, with a revenue of 27.078 billion yuan in H1 2024, a year-on-year increase of 0.24%, and a net profit attributable to shareholders of 637 million yuan, up 34% year-on-year [3][4] - The gross margin for the safety business has significantly improved, with a gross margin of 15.6% in H1 2024, an increase of 2.14 percentage points year-on-year [3][4] - The company has a strong order backlog, with new orders amounting to approximately 50.4 billion yuan in H1 2024, a notable increase from 42.2 billion yuan in H1 2023 [4] Financial Performance Summary - Total revenue (in million yuan) is projected to be 60,416 in 2024E, with a year-on-year growth of 8.41% [2] - Net profit attributable to shareholders (in million yuan) is expected to reach 1,513.35 in 2024E, reflecting a year-on-year increase of 39.71% [2] - The latest diluted EPS is projected to be 1.07 yuan per share in 2024E, with a P/E ratio of 12.86 [2] Business Segment Performance - The gross margin for the automotive safety business in H1 2024 is 13.9%, an increase of 3.3 percentage points year-on-year, indicating improved profitability in this segment [3][4] - The gross margin for the automotive electronics business is 19.4%, a slight decrease of 0.5 percentage points year-on-year, primarily due to the reclassification of warranty expenses [3][4] Market Data - The closing price of the stock is 13.82 yuan, with a market capitalization of approximately 19.47 billion yuan [6] - The price-to-book ratio is 1.44, indicating the market's valuation relative to the company's book value [6] Order and Growth Outlook - The company has received new orders worth 63 billion yuan in the first seven months of 2024, with a significant portion coming from the automotive safety business and new energy vehicle orders [4] - The company maintains its revenue forecast for 2024 at 60.4 billion yuan, while slightly adjusting the forecasts for 2025 and 2026 [4]