SK(688155) 西南证券·2024-09-09 07:30Investment Rating - Buy (First Coverage) with a target price of 45.00 yuan (6 months) [1] Core Views - The company's overseas business is beginning to boom, with a strategic focus on solid-state battery equipment [1] - The company's gross profit reached 330 million yuan in H1 2024, a YoY increase of 17.4%, with a gross margin of 28.3%, up 4.5 percentage points YoY [1] - Overseas orders now account for 70% of the company's total orders, with Europe being the primary market, leading to a rapid increase in gross margin [1] - The company's overseas revenue in H1 2024 reached 378 million yuan, a significant increase, accounting for 32% of total revenue [1] - The company is one of the few Chinese companies providing complete Pack module equipment to overseas customers, with strong competitive advantages in the overseas Pack equipment market [1] Business Overview - The company focuses on the new energy vehicle industry, with multiple lines of business in the lithium battery sector, including power battery structural components and new energy vehicle equipment [1][8] - The company has recently announced a collaboration with Qingtao Energy to develop core equipment for solid-state batteries, which is expected to be a key growth area in the future [1][8] - The company's main customers include CATL, Volkswagen, and BMW, with a strong presence in Europe and North America [8] - The company has established manufacturing bases in Shanghai, Wuhan, and Changsha, and has subsidiaries or offices in Germany, the Czech Republic, and the United States [8] Overseas Market Expansion - The company's overseas revenue in H1 2024 reached 378 million yuan, a significant increase from 76.729 million yuan in 2023, with overseas orders now accounting for 70% of total orders [1][13] - The company has secured high-value overseas contracts, including a 79.772 million euro order from a German customer and a 620 million yuan order from another European customer, ensuring stable overseas revenue growth [15] - The company has a first-mover advantage in the overseas Pack equipment market, with multiple production lines already delivered to European customers, including Volkswagen and Skoda [1][28] Financial Performance and Forecast - The company's revenue in H1 2024 was 1.17 billion yuan, a slight YoY decrease of 1.2%, but net profit attributable to the parent company surged to 130 million yuan, a YoY increase of 2161.9% [1] - The company's gross profit margin for new energy vehicle intelligent automation equipment reached 33.6% in H1 2024, up 10 percentage points from 2023 [1] - The company is expected to achieve revenues of 3.0 billion yuan, 3.93 billion yuan, and 4.66 billion yuan in 2024, 2025, and 2026, respectively, with net profits of 281 million yuan, 431 million yuan, and 547 million yuan [2][30] - The company's EPS is forecasted to be 2.25 yuan, 3.45 yuan, and 4.37 yuan for 2024, 2025, and 2026, respectively, with a compound annual growth rate of 40% in net profit from 2025 to 2026 [2][31] Industry Outlook - The global new energy vehicle market is expected to grow rapidly, with overseas markets, particularly Europe, showing strong demand for new energy vehicles and related equipment [1][23] - The company is well-positioned to benefit from the increasing localization policies and demand for new energy vehicles in Europe, with a strong competitive advantage in the Pack equipment market [1][23] - The company's collaboration with Qingtao Energy on solid-state battery equipment is expected to further open up the lithium battery equipment market, providing additional growth opportunities [2][31] Valuation - The company's 2024 PE is estimated at 15x, with a target PE of 20x, leading to a target price of 45 yuan [2][31] - Compared to peers in the lithium battery industry, the company's valuation is attractive, with a strong growth outlook and competitive advantages in the overseas market [31][32]