CIXING(300307) 甬兴证券·2024-09-05 03:00Investment Rating - The report maintains a "Buy" rating for Cixing Co Ltd (300307) [3][6] Core Views - Cixing achieved revenue of RMB 1.278 billion in H1 2024, up 1.00% YoY, with net profit attributable to parent company of RMB 284 million, surging 197.38% YoY [2] - The flat knitting machine business maintained stable growth, generating revenue of RMB 1.129 billion in H1 2024, up 18.93% YoY, driven by replacement demand for existing equipment [2] - The company's gross margin improved to 30.86% in H1 2024, up 3.75 percentage points from 27.11% in the same period last year [2] - The computer flat knitting machine industry is expected to enter a new replacement cycle, with the last peak in 2017 and typical equipment lifespan of 5-8 years [2][3] - The integration of AI, IoT, and big data technologies is enhancing the intelligence of computer flat knitting machines, enabling remote monitoring and management [2] Financial Projections - Revenue is projected to reach RMB 2.68 billion in 2024, RMB 3.15 billion in 2025, and RMB 3.714 billion in 2026, representing YoY growth of 31.9%, 17.5%, and 17.9% respectively [3][5] - Net profit attributable to parent company is forecasted at RMB 387 million in 2024, RMB 258 million in 2025, and RMB 318 million in 2026 [5] - EPS is estimated to be RMB 0.49 in 2024, RMB 0.33 in 2025, and RMB 0.40 in 2026 [3][5] - The company's ROE is expected to improve significantly to 11.6% in 2024 from 3.9% in 2023 [5] Industry Outlook - The computer flat knitting machine market is expected to maintain high prosperity due to technological advancements and replacement demand [2] - The one-piece molding flat knitting machine technology aligns with the "small order, fast return" trend in the downstream apparel industry, potentially becoming a new growth driver [3] - The integration of intelligent technologies is transforming the industry, enabling more complex pattern production and multi-functional capabilities [2]