NJEC(SH:600699) Capital Securities·2024-09-03 02:11Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 27.079 billion yuan for the first half of 2024, a year-on-year increase of 0.24%, and a net profit attributable to shareholders of 637 million yuan, up 33.91% year-on-year [3] - The performance growth is in line with expectations, with continuous improvement in profitability. In Q2 2024, the company achieved a revenue of 13.801 billion yuan, a year-on-year increase of 0.06%, and a net profit of 330 million yuan, up 19.96% year-on-year [3] - The company has received new orders exceeding 63 billion yuan globally, with over 45 billion yuan from automotive safety and over 18 billion yuan from automotive electronics [3] - Profit margins are continuously optimized, with a gross margin of 15.50% in Q2 2024, an increase of 1.65 percentage points year-on-year [3] - The company is extending its automotive electronics product categories and focusing on intelligent driving and smart cabin technologies [3] - The automotive safety business is expected to continue improving profitability, supported by cost reduction and efficiency enhancement measures [3] - The company has a strong order backlog, with projected revenues of 59.42 billion yuan, 64.55 billion yuan, and 69.46 billion yuan for 2024, 2025, and 2026, respectively [3] Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 27.079 billion yuan, with a net profit of 637 million yuan, reflecting a year-on-year growth of 33.91% [3] - For Q2 2024, the revenue was 13.801 billion yuan, with a net profit of 330 million yuan, marking a year-on-year increase of 19.96% [3] - The company expects revenues of 59.42 billion yuan in 2024, 64.55 billion yuan in 2025, and 69.46 billion yuan in 2026, with corresponding net profits of 1.46 billion yuan, 1.93 billion yuan, and 2.22 billion yuan [4] Profitability Metrics - The gross margin for Q2 2024 was 15.50%, with a net profit margin of 3.31% [3] - The automotive safety business achieved a gross margin of 13.94%, an increase of 3.3 percentage points year-on-year [3] - The company’s projected PE ratios for 2024, 2025, and 2026 are 13.8, 10.4, and 9.1, respectively [4] Business Development - The company is expanding its product offerings in intelligent driving and smart cabin technologies, including UWB technology and ADAS L2 Smart Camera [3] - The automotive safety business is expected to enhance profitability through global procurement unification and automated production lines [3]