Chunqiu ET(SH:603890) Huaxin Securities·2024-09-02 23:38Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1][4]. Core Insights - The company has shown significant growth in revenue and profit, with a 32.48% year-on-year increase in revenue for the first half of 2024, reaching 1.877 billion yuan, and a remarkable 275.24% increase in net profit attributable to shareholders, amounting to 27 million yuan [1]. - The company is benefiting from the accelerated penetration of AIPC (Advanced Integrated Product Components) in the market, particularly in the notebook computer sector, which is expected to drive demand for its structural components and molds [1][3]. - The company is actively expanding its business in the new energy vehicle (NEV) parts sector, with stable orders and a broad customer base, including partnerships with major players like Xiaomi, NIO, and BYD [3]. Financial Performance - In Q2 2024, the company achieved a revenue of 962 million yuan, a year-on-year increase of 34.02%, and a quarter-on-quarter growth of 6.43%. However, the net profit attributable to shareholders decreased by 10.45% year-on-year to 12 million yuan [1]. - The revenue structure for H1 2024 shows that the structural components business generated 1.604 billion yuan, while the communication equipment and mold businesses contributed 183 million yuan and 59 million yuan, respectively [1]. - The gross profit margin for H1 2024 was 14.52%, reflecting a year-on-year increase of 1.61 percentage points [1]. Revenue Forecast - The company is projected to achieve revenues of 3.992 billion yuan in 2024, 5.137 billion yuan in 2025, and 6.082 billion yuan in 2026, with corresponding EPS estimates of 0.34 yuan, 0.59 yuan, and 0.79 yuan [4][6]. - The expected growth rates for revenue are 22.6% in 2024, 28.7% in 2025, and 18.4% in 2026 [6]. Market Position and Strategy - The company has established long-term stable partnerships with leading notebook brands such as Lenovo, Samsung, HP, Dell, and LG, which enhances its market position [1]. - The company is leveraging its expertise in traditional structural components to expand into the NEV parts market, focusing on magnesium alloy components and advanced manufacturing techniques [3].