Investment Rating - The report maintains a "Buy" rating for Fang Sheng Co Ltd (832662 BJ) [1] Core Views - The company is a "little giant" enterprise specializing in heat exchangers and heat exchange systems, with products applied in wind power, waste heat recovery, rail transit, air compressors, and construction machinery [4] - Overseas new projects completed testing and resumed delivery in Q2 2024, with new field sample development ongoing [1] - The company's business showed a weak Q1 market but gradually recovered in Q2, with stable sales performance in wind power, air compressors, rail transit, hydrogen energy, and energy storage compared to H1 2023 [5] - The company is expanding into emerging fields such as clean energy and energy conservation, which is expected to drive growth [4] Financial Performance - Q2 2024 revenue reached 94 million yuan, a 53% increase quarter-over-quarter, with net profit attributable to the parent company of 11 61 million yuan, up 39% quarter-over-quarter [4] - H1 2024 revenue was 156 million yuan, down 15% year-over-year, with net profit attributable to the parent company of 19 96 million yuan, down 45% year-over-year [4] - The company's 2024-2026 net profit forecasts were adjusted to 53 million yuan, 68 million yuan, and 88 million yuan respectively, with corresponding EPS of 0 60 yuan, 0 77 yuan, and 1 00 yuan per share [4] - The current P/E ratios are 15 9x, 12 4x, and 9 5x for 2024-2026 respectively [4] Business Segments - Heat exchange systems and plate-fin heat exchangers generated revenues of 43 50 million yuan and 105 58 million yuan respectively in H1 2024 [5] - Heat exchange system revenue decreased by 40 05% year-over-year due to reduced demand for heat exchange system products used in coating machines and delayed certification testing for overseas customers' new projects [5] Strategic Developments - R&D expenses in H1 2024 reached 6 98 million yuan, accounting for 4 5% of revenue [6] - The company is conducting technical pre-research and customized development for leading enterprises in wind power, energy storage, data center, and hydrogen fuel cell thermal management fields [6] - The company's fundraising projects have entered the production line layout phase, and it plans to establish a wholly-owned subsidiary, Wuxi Fang Sheng Hui Neng Technology Co Ltd, to improve its industrial layout [6] Financial Forecasts - Revenue is expected to grow from 394 million yuan in 2024 to 602 million yuan in 2026, with year-over-year growth rates of 14 8%, 23 0%, and 24 2% respectively [6] - Net profit attributable to the parent company is forecasted to grow from 53 million yuan in 2024 to 88 million yuan in 2026, with year-over-year growth rates of -15 9%, 28 5%, and 29 8% respectively [6] - Gross margin is expected to remain stable at around 26 4%-26 9% from 2024 to 2026 [6]
方盛股份：北交所信息更新：海外新项目二季度测试完成交付恢复，新领域样品开发持续进行