Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.34, corresponding to a P/E ratio of 13 times for 2024 [2][4]. Core Views - The company’s revenue for H1 2024 was approximately USD 2.1 billion, showing a year-on-year growth of 1% after adjustments, outperforming the market by 1.2 percentage points [1]. - The North American market faced challenges due to reduced electric vehicle plans, while the Asia-Pacific market exhibited strong growth, with a 27.5% increase in revenue to USD 595 million [2]. - The company expects to achieve USD 6 billion in new orders for the full year and anticipates revenue growth to exceed the market by 3 percentage points [1][2]. Summary by Sections Financial Performance - H1 2024 gross margin was 10%, up 1 percentage point year-on-year, primarily due to reduced raw material costs [1]. - EBITDA increased by 6% year-on-year to USD 19.7 million, with an EBITDA margin improvement of 0.5 percentage points to 9.4% [1]. - The net profit attributable to shareholders for H1 2024 was USD 15.7 million, a decrease of 54% year-on-year, resulting in a net profit margin of 0.7% [1]. Market Dynamics - The company secured USD 2.1 billion in orders in H1 2024, with 43% coming from Chinese OEMs, nearly tripling the order size compared to the same period in 2023 [2]. - The company is expanding its product offerings in the Asia-Pacific region and has successfully obtained DPEPS orders [2]. Future Outlook - The company is optimistic about the rapid growth of the Chinese electric vehicle market and expects to maintain high growth rates in its Asia-Pacific business [2]. - The company plans to launch its first steer-by-wire technology vehicle in collaboration with a Chinese OEM by 2026, positioning itself to benefit from the increasing penetration of advanced driving technologies [2].
耐世特：亚太业务高成长，期待线控转向放量