SOLEX(SH:603992) Tianfeng Securities·2024-09-05 00:40Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [6][17]. Core Views - The company reported a revenue of 770 million in Q2 2024, a year-on-year decrease of 3%, while the net profit attributable to the parent company was 110 million, an increase of 43.2% year-on-year [1]. - The company is focusing on its core business, with stable growth in exports and a mid-term dividend plan to enhance shareholder value [1][2]. - The company is expanding its product lines in the kitchen and bathroom sector, responding to new consumer demands for health-oriented products [3]. Financial Performance - For the first half of 2024, the company achieved a revenue of 1.45 billion, a year-on-year increase of 3.8%, and a net profit of 220 million, up 83.7% year-on-year [1]. - The gross margin for Q2 2024 was 35.2%, an increase of 0.3 percentage points year-on-year, with net profit margin at 14.3%, up 4.6 percentage points year-on-year [2][4]. - The company plans to distribute a cash dividend of 110 million for the mid-term, representing a payout ratio of 49.79% [2]. Product and Market Strategy - The company is deepening its focus on kitchen and bathroom products, upgrading existing offerings and introducing high-performance, high-value-added innovations [3]. - The company is also advancing its beauty and health segment through technological innovations and expanding its customer base globally [1][2]. Supply Chain and Operational Efficiency - The construction of the company's factory in Vietnam is progressing steadily, with production expected to start in the second half of 2025, which will help mitigate tariff risks and ensure operational safety [2]. - The company has effectively managed supply chain risks and maintained stable operational costs despite fluctuations in raw material prices [4].