FOTON(SH:600166) Soochow Securities·2024-08-23 17:30Investment Rating - The report maintains a "Buy" rating for Foton Motor (600166) [1] Core Views - The company's Q2 2024 results show a significant decline in net profit, down 48.7% year-on-year, but a notable improvement in gross margin [1][3] - The commercial vehicle industry is expected to recover, with Foton focusing on enhancing product competitiveness and expanding its export business [4] Financial Performance Summary - For H1 2024, Foton achieved revenue of 23.97 billion yuan, a year-on-year decrease of 16.9%, and a net profit of 410 million yuan, down 31.6% [3] - Q2 2024 revenue was 11.1 billion yuan, with a year-on-year decline of 20.0% and a net profit of 158 million yuan, down 48.7% year-on-year [3] - The gross margin for Q2 2024 improved to 13.54%, up 1.1 percentage points year-on-year [3] - The company’s mid-heavy truck sales fell by 19.1% year-on-year, while light trucks and buses saw slight increases in sales [3] Future Outlook - Foton is expected to benefit from the recovery of the commercial vehicle industry, with plans to enhance its product lineup and expand into high-margin products [4] - The company aims to cover its entire commercial vehicle range with AMT transmissions and accelerate its digital transformation [4] - Profit forecasts for 2024 to 2026 are set at 1.339 billion, 1.666 billion, and 2.044 billion yuan respectively, with corresponding EPS of 0.17, 0.21, and 0.26 yuan [4]