Kaizhong Precision(002823) 国泰君安·2024-06-26 07:31Investment Rating - The report maintains an Overweight rating for the company, with a target price of 16.44 CNY, compared to the current price of 10.90 CNY [5] Core Views - The company's performance is in line with expectations, with strong order and delivery demand [4] - The company's new energy vehicle component business is progressing smoothly, contributing to market expansion [16] - The company's R&D and technological transformation have been recognized by core customers, enhancing its competitive edge [16] Financial Performance - The company expects H1 2024 net profit attributable to shareholders to be 70-90 million CNY, a year-on-year increase of 1068.44%-1402.28% [16] - Non-GAAP net profit is expected to be 65-85 million CNY, a year-on-year increase of 183.56%-270.81% [16] - Revenue is forecasted to grow from 3,024 million CNY in 2023 to 4,383 million CNY in 2026, with a CAGR of 13.8% [17] - Net profit is expected to increase from 77 million CNY in 2023 to 323 million CNY in 2026, with a CAGR of 61.5% [17] Business Highlights - The company's new energy precision connectors and other products are in high demand, with rapid sales growth [16] - The company's operational efficiency has improved, with cost reductions and efficiency gains contributing to performance [16] - The company's German subsidiary provides an integrated R&D, production, and sales platform, gaining recognition from international clients [16] - The company has secured new project contracts from domestic and international clients, further expanding its market presence [16] Financial Ratios - The company's ROE is expected to increase from 5.2% in 2023 to 15.3% in 2026 [17] - The net profit margin is forecasted to rise from 2.5% in 2023 to 7.4% in 2026 [17] - The P/E ratio is expected to decrease from 41.27 in 2023 to 9.82 in 2026, indicating improving valuation metrics [17] Market Performance - The company's stock price has shown a 4% increase over the past 12 months, outperforming the Shenzhen Component Index by 24% [8] - The stock's 52-week price range is 7.07-13.29 CNY, with a current market capitalization of 3,166 million CNY [7]