KSHG(SH:605333) GOLDEN SUN SECURITIES·2024-08-28 03:33Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company's performance in H1 2024 exceeded expectations, driven by significant growth in revenue and net profit, with revenue reaching 3.42 billion yuan, up 142% year-on-year, and net profit at 260 million yuan, up 722% year-on-year [1]. - The rapid growth is attributed to the increase in orders from key customers in the electric vehicle sector, with the company’s top five customers accounting for 84% of its revenue [1]. - The company is expanding its customer base by onboarding new clients such as Seres, Geely, Daimler, and NIO, which enhances its market coverage and future growth prospects [1]. - The scale effect has led to a significant improvement in profitability, with a gross margin of 15.4% and a net margin of 7.5% in H1 2024, reflecting a year-on-year increase of 4 percentage points and 10 percentage points, respectively [1]. - The company is well-positioned to benefit from the expanding market for electric and intelligent vehicles, with a focus on high-voltage wiring harnesses and core technology capabilities [1]. Financial Summary - The company’s revenue is projected to grow significantly, with estimates of 7.62 billion yuan in 2024, 10.37 billion yuan in 2025, and 12.44 billion yuan in 2026, reflecting growth rates of 90.4%, 36.1%, and 20.0% respectively [6]. - The net profit forecast for 2024 is adjusted to 511 million yuan, with further increases to 715 million yuan in 2025 and 842 million yuan in 2026 [2][6]. - The company’s P/E ratios are projected to be 20, 14, and 12 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation trend [2].