IKD(SH:600933) EBSCN·2024-09-04 09:09Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company's revenue for 1H24 increased by 22.9% year-on-year to 3.25 billion yuan, while net profit rose by 13.6% to 450 million yuan. However, 2Q24 showed a revenue decline of 2.1% quarter-on-quarter to 1.61 billion yuan, with net profit down 6.0% to 220 million yuan, primarily due to rising raw material prices, increased depreciation, and a significant drop in foreign exchange gains [2]. - The gross margin decreased in 2Q24, but it is expected to gradually recover in 2H24 due to stabilizing aluminum prices, improved downstream demand, and inventory digestion [2][3]. - The company is enhancing its product offerings to align with the growth of the new energy vehicle market, with over 30% of sales in 1H24 coming from products for electric vehicles. The global production layout is progressing steadily, with new factories in North America, Southeast Asia, and Europe [3]. Summary by Sections Financial Performance - 1H24 revenue reached 3.25 billion yuan, a 22.9% increase year-on-year, while net profit was 450 million yuan, up 13.6% [2]. - 2Q24 revenue was 1.61 billion yuan, a 15.9% year-on-year increase but a 2.1% decrease quarter-on-quarter. Net profit for 2Q24 was 220 million yuan, down 3.8% year-on-year and 6.0% quarter-on-quarter [2]. - The gross margin for 1H24 was 28.7%, down 0.4 percentage points year-on-year, and for 2Q24 it was 27.7%, down 0.9 percentage points year-on-year [2]. Product and Market Development - The company is expanding its product categories to support the new energy vehicle sector, achieving full coverage of aluminum alloy high-pressure die-casting components for electric vehicle systems [3]. - The global production layout includes new factories in Mexico and Malaysia, with the first phase of the Mexican plant already operational and the second phase expected to start in 2Q25 [3]. Profit Forecast and Valuation - The net profit forecasts for 2024E, 2025E, and 2026E have been adjusted downwards by 8.4%, 11.1%, and 12.7% to 1.085 billion yuan, 1.278 billion yuan, and 1.570 billion yuan respectively. The target price is set at 16.64 yuan, corresponding to a 15x PE for 2024E [3].