KEDE Numerical (SH:688305) Changjiang Securities·2024-09-06 02:13Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a strong order momentum with a 44% year-on-year increase in new orders for the first half of 2024, driven by high demand for high-end five-axis machine tools [3][4]. - The company is actively expanding its production capacity through a private placement, which is expected to enhance its market share and profitability [4][6]. - The company has a solid position in the aerospace sector, with 63% of new orders in the first half of 2024 coming from this industry, indicating a stable growth trajectory [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 256 million, a year-on-year increase of 27.12%, and a net profit of 48 million, up 1.78% [3]. - For Q2 2024, revenue reached 154 million, reflecting a 33.37% year-on-year growth, while net profit increased by 61.18% to 33 million [3][4]. Order and Market Dynamics - The company’s new orders in H1 2024 showed a diverse product mix, with high-end five-axis machine tools accounting for 54% of new orders, and other machine types also seeing increased order shares [3][4]. - The aerospace sector remains a key focus, with a 38% increase in new orders in this area, supported by ongoing demand from large aircraft production [3][4]. Capacity Expansion and Future Outlook - The company is progressing with its capacity expansion plans, with ongoing projects in Dalian and land acquisitions in Ningxia and Shenyang expected to come online by 2025 [4]. - The projected net profits for 2024, 2025, and 2026 are estimated at 144 million, 219 million, and 316 million respectively, with corresponding price-to-earnings ratios of 41x, 27x, and 19x [4][6].