Shanghai Ruking Technologies (SZ:301525) Soochow Securities·2024-09-12 07:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has a strong focus on the heat pump controller sector, but its performance has not met market expectations. In the first half of 2024, the company reported revenue of 658 million yuan, a year-on-year decrease of 16%, and a net profit attributable to shareholders of 94 million yuan, down 19% year-on-year [2][11] - The HVAC/R sector is currently experiencing a destocking cycle, which has impacted short-term performance, but the long-term trend towards energy efficiency remains strong, supported by policies such as the EU's action plan for the energy grid [2][14] - The electric vehicle thermal management segment continues to see high growth, with revenue increasing by 69% year-on-year in the first half of 2024, indicating a further increase in market share [2][14] - The company is maintaining strict control over operating expenses while keeping R&D investments high, with R&D expenses rising by 37% year-on-year in the first half of 2024 [2][14] Financial Forecasts and Valuation - The company's net profit forecasts for 2024 and 2025 have been revised down to 219 million yuan and 288 million yuan, respectively, from previous estimates of 376 million yuan and 528 million yuan. The expected net profit for 2026 is 361 million yuan, reflecting growth rates of 1%, 32%, and 25% for the respective years [2][14] - The corresponding price-to-earnings (P/E) ratios are projected to be 23x, 17x, and 14x for 2024, 2025, and 2026, respectively, indicating a favorable long-term demand outlook for the heat pump market [2][14]