亿和控股：正在向一级供应商转型

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HK$1.40 from HK$1.50 [2][4]. Core Insights - The company is transitioning towards becoming a first-tier supplier in the automotive parts sector, which is expected to enhance revenue from OEM orders in FY25 [1]. - Despite a cautious approach to maintain gross profit margins (GPM), revenue and net profit forecasts for FY24 have been reduced by 3% and 9% respectively, but the earnings outlook for FY25 appears more promising [1]. - The company anticipates a 15% year-on-year growth in automotive parts revenue for FY25, reaching HK$2.34 billion [1]. - The office automation (OA) segment's gross profit margin expanded by approximately 1 percentage point in the first half of 2024, with a projected continued improvement in the second half [1]. Financial Summary - Revenue projections for FY24 are lowered to HK$6.38 billion, with net profit estimates adjusted to HK$260 million [1][7]. - For FY25, revenue is expected to grow to HK$6.86 billion, with net profit forecasted at HK$301 million, reflecting a 15$0.50 per share for the automotive components segment and HK$0.90 per share for the OA segment [2][9]. - The overall sum-of-the-parts (SOTP) valuation suggests a target price of HK$1.40, indicating a potential upside of 118.8% from the current price of HK$0.64 [4][9]. Revenue and Profitability Forecasts - Revenue is projected to grow from HK$6.38 billion in FY24 to HK$6.86 billion in FY25, and further to HK$7.23 billion in FY26 [3][7]. - Net profit is expected to increase from HK$260 million in FY24 to HK$301 million in FY25, and HK$327 million in FY26 [3][7]. - The gross profit margin is forecasted to stabilize around 21% for FY24 to FY26 [7][8]. Market Performance - The stock has shown a decline of 4.5% over the past month and 9.9% over the past three months, indicating a challenging market environment [4].