IKD(SH:600933) Guotai Junan Securities·2024-09-02 12:11Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to 18.08 CNY, down from the previous target of 28.15 CNY [4][3]. Core Insights - The company's Q2 performance showed a slight decline in revenue and profit compared to the previous quarter, with H1 revenue reaching 3.25 billion CNY, a year-on-year increase of 22.9%, and a net profit of 450 million CNY, up 13.6% year-on-year [3][4]. - The report highlights the ongoing global expansion of the company's production capabilities, with new facilities in North America, Southeast Asia, and Europe, which are expected to enhance competitiveness in the North American market [3][4]. Financial Performance Summary - Q2 revenue was 1.61 billion CNY, a year-on-year increase of 15.9% but a quarter-on-quarter decrease of 2.1%. The net profit for Q2 was 220 million CNY, down 3.8% year-on-year and 6.0% quarter-on-quarter [3][4]. - The gross margin for Q2 was 27.7%, showing a decline compared to previous periods, attributed to rising raw material costs and operational challenges in the new Mexican facility [3][4]. - The report adjusts the EPS forecasts for 2024-2026 to 1.13 CNY (-0.10), 1.41 CNY (-0.23), and 1.73 CNY (-0.25) respectively, reflecting increased market competition and foreign exchange losses [3][4]. Global Expansion Efforts - The company is actively establishing production bases in key regions, with the second phase of the Mexican factory expected to commence production in Q2 2025. The Malaysian production base was completed in June 2024, with production lines for aluminum and zinc alloy components expected to start in Q4 2024 [3][4].