Farasis Energy(SH:688567) EBSCN·2024-08-26 13:41Investment Rating - The report maintains an "Accumulate" rating for the company [4]. Core Views - The company reported a revenue of 6.974 billion yuan in H1 2024, a slight decrease of 0.15% year-on-year, but achieved profitability in Q2 2024 with a net profit of 27 million yuan, driven by increased overseas sales and improved operational efficiency [2][3]. - The overseas revenue accounted for 74.79% of total revenue in H1 2024, growing by 24.33% year-on-year, indicating a significant shift towards international markets [2]. - The company is investing heavily in capital expenditures for its new production facilities, which are expected to enhance production efficiency and reduce costs in the future [2][3]. Summary by Sections Financial Performance - H1 2024 revenue was 69.74 billion yuan, with a net loss of 1.9 billion yuan, but Q2 showed a turnaround with revenue of 40.5 billion yuan, up 24.61% year-on-year and 38.49% quarter-on-quarter [2]. - The average selling price of battery systems decreased by 9% compared to 2023, but Q2 saw an increase to approximately 0.89 yuan/Wh, an 8% rise from Q1 [2][3]. - The gross margin for Q2 2024 was 14.64%, reflecting an increase of 2.75 percentage points quarter-on-quarter and 11.78 percentage points year-on-year [2]. Market Dynamics - The report highlights that the company's partnership with overseas clients has led to improved pricing mechanisms and profitability, particularly in the Turkish market [2]. - The joint venture with Togg in Turkey has shown a significant reduction in losses, contributing positively to the company's financials [2]. Future Outlook - The company has revised its profit forecasts for 2024 and 2025 downwards due to anticipated slow demand in the overseas battery market and declining raw material prices, projecting net profits of 57 million yuan and 402 million yuan respectively [2][3]. - The introduction of the new SPS product line is expected to ramp up production and sales in the coming year, potentially marking a turning point for the company's operations [2].