YDC(605555) Tianfeng Securities·2024-08-31 04:30Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [3][11]. Core Insights - The company achieved a revenue of 1.86 billion yuan in H1 2024, representing a year-on-year growth of 38.8%. The net profit attributable to the parent company was 210 million yuan, up 20.8% year-on-year [1]. - The company is experiencing strong growth in its core products, with significant revenue contributions from its home appliance and automotive parts businesses, which generated 1.64 billion yuan and 150 million yuan respectively in H1 2024, reflecting year-on-year increases of 37% and 69% [1]. - The company is actively expanding its market presence, with new projects such as dishwashers beginning production and certifications obtained for European markets [1]. Financial Performance - The gross profit margin for H1 2024 was 17.7%, consistent with the previous year, while the net profit margin for Q2 2024 was 11.7%, down 4.9 percentage points year-on-year. However, excluding financial expenses, the net profit margin was approximately 9.0%, an increase of 1.5 percentage points year-on-year [1]. - The company is expected to achieve net profits of 430 million yuan, 540 million yuan, and 630 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 14.3x, 11.4x, and 9.6x [1][2]. Growth Drivers - The company is making significant progress in its automotive parts business, with key clients such as Nidec, ZF, and JTEKT, and is enhancing its technical capabilities [1]. - The introduction of the international small appliance brand SharkNinja is expected to contribute to revenue growth, alongside deepening cooperation with long-term client TTI [1]. - The smart dishwasher production line is expected to commence mass production in 2024, which will gradually contribute to revenue [1].