KSHG(SH:605333) Shanghai Securities·2024-10-21 03:00Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company is positioned to benefit from the rapid growth of the new energy vehicle (NEV) market, with significant improvements in profitability [3][4]. - The company has been actively expanding its product range and customer base in response to the electrification of vehicles, leading to a substantial increase in revenue and net profit [3][4]. Summary by Sections 1. Continuous Investment in the NEV Market - The company specializes in the research, production, and sales of high and low voltage wiring harnesses for automobiles, primarily serving well-known automotive brands [3][9]. - The company has shifted focus towards the NEV market, achieving significant revenue growth, with total revenue of 3.418 billion yuan in H1 2024, a year-on-year increase of 142.03% [3][13]. - The net profit for H1 2024 reached 255 million yuan, up 721.73% year-on-year, driven by the rapid development of the NEV market [3][13]. 2. Electrification and Intelligentization Driving Market Growth - The penetration rate of NEVs is increasing, leading to a growing demand for high voltage wiring harnesses, which are critical components of the high voltage electrical systems in NEVs [3][20]. - The global automotive wiring harness market is expected to grow significantly, with a projected CAGR of 7.97% from 2023 to 2030, reaching approximately 100.899 billion USD by 2030 [18][19]. - The domestic automotive wiring harness market also shows steady growth, with a market size of 81.46 billion yuan in 2022, reflecting a year-on-year increase of 15.17% [19]. 3. Active Development of New Product Lines - The company is enhancing its manufacturing capabilities through intelligent manufacturing systems, which are expected to improve efficiency and product quality [3][4]. - High voltage wiring harnesses have seen rapid growth, with revenue from these products reaching 1.502 billion yuan in 2023, accounting for 37.52% of total revenue [3][4]. - The company plans to expand its production capacity for high voltage and special wiring harnesses, with expected orders for high voltage harnesses projected to reach 3.0914 million sets by 2026 [3][4]. 4. Profitability Forecast - The company anticipates revenues of 7.491 billion yuan, 9.605 billion yuan, and 11.562 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 87.14%, 28.23%, and 20.37% [4]. - The net profit is expected to reach 539 million yuan, 720 million yuan, and 900 million yuan for the same years, reflecting substantial growth rates of 896.38%, 33.50%, and 25.13% [4].