Huaan Securities·2024-08-27 04:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a significant profit exceeding expectations, with Q2 2024 revenue reaching 888.9 billion CNY, a year-on-year increase of 32%, surpassing Bloomberg's forecast of 867.5 billion CNY [1] - The gross margin was 20.69%, slightly above the expected 19.57%, while operating profit was 5.89 billion CNY, up 45.7% year-on-year, significantly exceeding the forecast of 4.09 billion CNY [1] - The company disclosed its automotive performance for the first time, with automotive revenue of 62 billion CNY and a gross margin of 15.4% [1][3] Summary by Sections Q2 2024 Performance - Total revenue was 888.9 billion CNY (yoy +32%), exceeding expectations - Gross margin was 20.69%, slightly above expectations - Operating profit was 58.9 billion CNY (yoy +45.7%), significantly above expectations - GAAP net profit was 50.7 billion CNY (yoy +38.3%), exceeding expectations - Adjusted net profit was 61.7 billion CNY (yoy +20.1%), also exceeding expectations - Revenue breakdown: - Mobile business: 465.2 billion CNY (yoy +27.1%) - IoT business: 267.6 billion CNY (yoy +20.3%) - Internet business: 82.7 billion CNY (yoy +11.0%) - Smart automotive and innovative business: 64 billion CNY [1] Mobile Business Insights - Mobile shipment growth outpaced market growth, with a year-on-year increase of 27.2% - High-end market share increased significantly in mainland China, with ASP only decreasing by 0.8% to 1103.5 CNY - Mobile business gross margin was 12.10%, down 1.2 percentage points year-on-year [1] IoT and Internet Business - IoT revenue grew by 20.3% year-on-year to 268 billion CNY, driven by increased sales of large appliances and IoT products overseas - Internet business revenue was 82.7 billion CNY (yoy +11.0%) - IoT gross margin improved by 2.1 percentage points to 19.7%, while internet business gross margin increased by 4.2 percentage points to 78.3% [1] Automotive Business - The automotive segment reported revenue of 62 billion CNY, with a gross margin of 15.4% - The company delivered over 27,000 units of the SU7 series in Q2, with an ASP of 229,000 CNY - The automotive factory has started double-shift production, significantly optimizing capacity [1][3] Future Projections - Revenue projections for 2024, 2025, and 2026 are 3436 billion CNY, 4025 billion CNY, and 4506 billion CNY, respectively, with year-on-year growth rates of 26.8%, 17.1%, and 11.9% - Adjusted net profit projections for the same years are 214 billion CNY, 237 billion CNY, and 277 billion CNY, with year-on-year growth rates of 11.1%, 10.7%, and 16.9% [3][4]