Yonggui(SZ:300351) Shanxi Securities·2024-09-30 12:13Investment Rating - The report assigns an "Add-A" investment rating to the company, indicating a positive outlook for its stock performance in the coming months [3]. Core Views - The company is expected to see significant growth in its vehicle-mounted and energy information segments, with a nearly 50% increase in revenue year-on-year for the first half of the year [2]. - The company has successfully entered the supply chains of major domestic and joint venture brands, including BYD, Geely, and Honda, showcasing its strong market position [1]. - The company has secured contracts worth 9.006 million yuan for the procurement and installation of electromechanical systems for the Monterrey Metro lines in Mexico, indicating its expanding international footprint [1]. Financial Performance - In the first half of the year, the company achieved operating revenue of 851 million yuan, a year-on-year increase of 25.28%, with a net profit of 72.92 million yuan, up 5.54% year-on-year [2]. - The vehicle-mounted and energy information segment generated revenue of 497 million yuan, reflecting a year-on-year growth of 49.18%, while the rail transit and industrial segment saw revenue of 295 million yuan, down 5.30% year-on-year [2]. - The gross margin for the rail transit segment was 41.66%, an increase of 1.15 percentage points year-on-year, contributing 34.6% to total revenue [2]. Future Projections - The company is projected to achieve net profits of 120 million yuan, 159 million yuan, and 213 million yuan for the years 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 18.8%, 32.0%, and 34.6% [3]. - Earnings per share (EPS) are expected to be 0.31 yuan, 0.41 yuan, and 0.55 yuan for the same years, with corresponding price-to-earnings (P/E) ratios of 49.8, 37.7, and 28.0 [3]. Market Position and Strategy - The company is focusing on expanding its market share in the rail transit connector business while also increasing efforts in non-connector products, which are expected to contribute to revenue growth [2]. - The company is enhancing its product gross margins through various measures, including resource integration and process optimization [2]. - The company plans to commence production in Thailand by Q4 2024, aiming to meet overseas market demands more efficiently [2].