Neway CNC(SH:688697) Guotai Junan Securities·2024-08-28 23:37Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company's performance is below expectations, with a revenue of 1.162 billion yuan in H1 2024, representing a 4.93% increase year-on-year, while net profit decreased by 4.86% to 145 million yuan [3]. - The manufacturing sector's downturn is expected to improve with the acceleration of equipment renewal policies, which could lead to a marginal recovery in the manufacturing industry [3]. - The company continues to expand its industry layout, focusing on high-end and overseas markets [3]. Financial Summary - The report revises the EPS forecast for 2024-2026 to 0.99, 1.26, and 1.52 yuan respectively, down from previous estimates of 1.16, 1.38, and 1.75 yuan [3]. - The target price is adjusted to 19.80 yuan, down from 25.75 yuan, based on a 20x PE for 2024 [3][4]. - As of June 2024, the company reported contract liabilities of 325 million yuan, a 30% increase from the previous quarter, indicating improved order intake [3]. Market Data - The company's current stock price is 13.10 yuan, with a 52-week price range of 12.65 to 23.76 yuan [4][5]. - The total market capitalization is 4.279 billion yuan [5]. Industry Context - The manufacturing PMI has been below the threshold for three consecutive months, indicating a continued decline in manufacturing activity [3]. - The government has introduced measures to support large-scale equipment renewal and consumption upgrades, which are expected to positively impact the manufacturing sector in the second half of 2024 [3].