Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.24, indicating a potential upside from the current price of HKD 2.47 [1][9]. Core Insights - The company reported a revenue of USD 2.1 billion for the first half of 2024, a slight decrease of 0.1% year-on-year, with a net profit of USD 15.7 million, down 53.8% year-on-year. The gross margin improved to 10.1%, up 1 percentage point year-on-year [2]. - The Asia-Pacific region showed strong growth, with a revenue increase of 9.3% year-on-year, while North America experienced a decline of 6.3% [2]. - The decline in net profit was primarily due to impairment losses related to specific customer projects and increased tax expenses. However, the company expects a stabilization and recovery in gross and net profits in 2024 due to cost reduction efforts and a favorable raw material price trend [2][3]. Summary by Sections Financial Performance - Revenue for H1 2024 was USD 2.1 billion, with a net profit of USD 15.7 million. The gross margin was 10.1%, and EBITDA margin was 9.4% [2]. - Revenue breakdown by region for H1 2024: North America USD 1.12 billion (-6.3% YoY), Asia-Pacific USD 590 million (+9.3% YoY), EMEASA USD 370 million (+1.4% YoY) [2]. Growth Drivers - The company successfully launched 38 new customer projects in H1 2024, with a focus on electric vehicle (EV) projects, indicating a robust order book and potential for above-market growth [3]. - The company is positioned to benefit from advancements in autonomous driving technology and has secured two orders for steer-by-wire systems, showcasing its technological leadership [3]. Earnings Forecast - The company is projected to achieve a compound annual growth rate (CAGR) of 73.4% in net profit from 2024 to 2026, with corresponding price-to-earnings (PE) ratios of 9, 5.7, and 4.1 for the respective years [3][9].
耐世特：2024年半年报点评：毛利率持续恢复，亚太地区快速增长