ANHUI ZHONGDING(000887) Xinda Securities·2024-09-01 01:30Investment Rating - The investment rating for Zhongding Co., Ltd. (000887.SZ) is "Buy," maintaining the previous rating of "Buy" [1]. Core Views - The company's profitability is steadily improving, with a revenue of 9.67 billion yuan in the first half of 2024, representing a year-on-year increase of 18.1%. The net profit attributable to the parent company reached 720 million yuan, up 34.8% year-on-year [1]. - In Q2 2024, the company achieved a revenue of 4.98 billion yuan, a 15.0% increase year-on-year, and a net profit of 360 million yuan, reflecting a 32.2% year-on-year growth [1]. - The gross margin for Q2 was 22.05%, up 0.55 percentage points year-on-year, while the net margin was 7.24%, an increase of 1.17 percentage points year-on-year [1]. - The company is expanding its incremental business, particularly in air suspension systems and lightweight chassis, with significant orders received [1]. Financial Performance Summary - Revenue for the first half of 2024 was 9.67 billion yuan, with a year-on-year growth of 18.1% [1]. - The net profit attributable to the parent company was 720 million yuan, marking a 34.8% increase year-on-year [1]. - The company’s gross margin for Q2 was 22.05%, while the net margin was 7.24% [1]. - The revenue from the cooling system business was 2.53 billion yuan, down 0.72% year-on-year, while the sealing system business revenue was 1.94 billion yuan, up 10.9% year-on-year [1]. - The lightweight system revenue surged by 71.9% year-on-year to 1.92 billion yuan [1]. Business Segment Performance - The cooling system business generated revenue of 2.53 billion yuan, with a gross margin of 15.32% [1]. - The sealing system business achieved revenue of 1.94 billion yuan, with a gross margin of 26.0% [1]. - The intelligent chassis air suspension system reported revenue of 820 million yuan, up 20.1% year-on-year, with a gross margin of 22.7% [1]. - The lightweight system revenue reached 1.92 billion yuan, with a gross margin of 9.4% [1]. - The rubber business generated revenue of 3.60 billion yuan, with a gross margin of 18.7% [1]. Order and Project Development - The company has secured a total order value of approximately 14.4 billion yuan for its domestic air suspension business, with significant progress in various projects [1]. - The lightweight chassis segment has received orders worth about 4.6 billion yuan from major manufacturers such as Mercedes-Benz and BYD [1]. - The thermal management system business has accumulated orders of approximately 5.6 billion yuan in the first half of 2024 [1]. Profit Forecast and Investment Rating - The company is expected to achieve net profits of 1.40 billion yuan, 1.68 billion yuan, and 1.89 billion yuan for the years 2024, 2025, and 2026, respectively, corresponding to P/E ratios of 11, 9, and 8 times [1].