HangKe Technology(688006) 海通证券·2024-09-06 07:10Investment Rating - The investment rating for the company is "Outperform the Market" [2][6][10] Core Views - The company reported a 10.85% year-on-year decline in revenue for the first half of 2024, amounting to 1.891 billion yuan, and a 43.39% drop in net profit to 269 million yuan [5][7] - The decline in performance is attributed to intensified competition in the domestic lithium battery industry and extended equipment acceptance cycles, leading to decreased sales revenue [5][9] - The company has received significant overseas orders, including a contract from Volkswagen worth over 45% of its 2023 revenue, indicating strong growth potential in international markets [5][9] Financial Summary - For the first half of 2024, the company's gross margin and net margin were 29.9% and 14.2%, respectively, reflecting a year-on-year decrease of 9.8 and 8.2 percentage points [5][12] - The operating cash flow for the first half of 2024 was 112 million yuan, a decrease of 24.9% year-on-year, primarily due to slower domestic sales collections [5][12] - The company forecasts net profits of 650 million yuan, 773 million yuan, and 912 million yuan for 2024, 2025, and 2026, respectively, with a projected EPS of 1.08 yuan for 2024 [6][12] Business Segment Analysis - The company is a leading supplier of charging and discharging equipment for various lithium battery types, with a focus on increasing its share in overseas markets due to reduced domestic orders [9][10] - Revenue from charging and discharging equipment is expected to decline by 15% in 2024, followed by a recovery of 10% in the subsequent years [10][12] - The company maintains a strong client base, including major players like Samsung, LG, and BYD, which positions it well for future growth in the expanding overseas lithium battery market [5][9]