KSHG(SH:605333) Tianfeng Securities·2024-08-29 00:30Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [5][13]. Core Insights - The company reported a significant increase in revenue and profitability for the first half of 2024, achieving a revenue of 3.418 billion yuan, a year-on-year increase of 142.03%, and a net profit of 255 million yuan, marking a substantial turnaround from losses [1][2]. - The introduction of new models, particularly the high-end Wanjie M9, is expected to drive sales growth, with the Wanjie series achieving a sales volume of 98,000 units in Q2 2024, a year-on-year increase of 743.6% [2][3]. - The company has made significant progress in expanding its customer base, securing contracts for various high-voltage connectors and wiring harnesses, which enhances its long-term sustainability [3][4]. Financial Performance Summary - For the first half of 2024, the company achieved a gross margin of 15.37%, up 4.21 percentage points year-on-year, and a net margin of 7.46%, up 10.37 percentage points year-on-year [1]. - In Q2 2024, revenue reached 1.885 billion yuan, a year-on-year increase of 148.87% and a quarter-on-quarter increase of 22.97%, with a net profit of 154 million yuan, reflecting a year-on-year increase and a quarter-on-quarter increase of 53.03% [1][2]. - The company’s operating expenses have been effectively managed, with a total expense ratio of 4.02% in Q2 2024, down 2.98 percentage points year-on-year [1]. Financial Forecast - The company is projected to achieve net profits of 504 million yuan, 704 million yuan, and 902 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 20, 14, and 11 [3][4].