Investment Rating - The report assigns a "Buy" rating to the company with a current price of 72.28 CNY and a reasonable value of 79.53 CNY per share [1][3]. Core Views - The company reported a revenue of 5.9 billion CNY for the first half of 2024, representing a year-on-year increase of 19.97%. The net profit attributable to shareholders reached 0.65 billion CNY, up 15.00% year-on-year, confirming a performance turning point in Q2 2024 [3][11]. - The rapid growth in the new energy vehicle (NEV) business is highlighted, with the NEV fuse revenue reaching 3.65 billion CNY, a 45.38% increase year-on-year. However, the wind and solar storage business faced challenges, with revenue of 1.66 billion CNY, down 1.88% year-on-year [11][13]. - The company is expanding its overseas business, having entered the supply chains of major clients like Tesla and Daimler, with overseas revenue of 0.45 billion CNY, a 16.08% increase year-on-year, accounting for 7.63% of total revenue [13][14]. Summary by Sections Financial Performance - The company achieved a gross margin of 38.37% in H1 2024, down 2.38 percentage points year-on-year, while the net margin was 11.01%, down 0.48 percentage points year-on-year. In Q2 2024, the gross margin improved to 38.64%, up 0.60 percentage points quarter-on-quarter [5][6]. - The company expects to maintain high growth for the full year, with projected revenues of 13.8 billion CNY, 18.3 billion CNY, and 23.2 billion CNY for 2024 to 2026, and net profits of 2.1 billion CNY, 3.4 billion CNY, and 4.5 billion CNY respectively [15][21]. Business Segments - The NEV fuse segment is performing strongly, while the wind and solar storage segment is under pressure due to market conditions. The company is also focusing on expanding its product offerings in the energy storage market [11][14]. - The company is actively investing in R&D to enhance its competitive edge, with a R&D expense ratio of 10.69% in H1 2024, down 0.44 percentage points year-on-year [8][9]. Market Position and Outlook - The company is positioned as a leader in the fuse market, benefiting from the increasing penetration of NEVs globally. The report maintains a "Buy" rating based on a projected PE of 25 times for 2024, corresponding to a reasonable value of 79.53 CNY per share [15][16].
中熔电气：毛利率逐季改善，新能源车业务高速增长