PPF(300258) 民生证券·2024-08-27 03:38Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 7.30 CNY per share, corresponding to a PE ratio of 13/10/8 for the years 2024-2026 [3]. Core Insights - The company reported a revenue of 1.007 billion CNY for H1 2024, a year-on-year increase of 6.3%, while the net profit attributable to shareholders was 94 million CNY, a decrease of 27.0% year-on-year. The adjusted net profit was 76 million CNY, reflecting a significant increase of 47.5% year-on-year [1]. - The revenue for Q2 2024 was 503 million CNY, showing a slight increase of 0.8% year-on-year but a marginal decrease of 0.1% quarter-on-quarter. The gross profit margin for Q2 was 23.8%, down 1.0 percentage points year-on-year and 3.5 percentage points quarter-on-quarter [1]. - The company is expanding its product categories, focusing on lightweight components and main reduction gears, with production expected to contribute to revenue starting in 2024 [1]. - The establishment of a wholly-owned subsidiary in Thailand for manufacturing automotive parts is anticipated to enhance the company's global footprint and reduce the impact of export tariffs and shipping costs [1]. Financial Summary - Revenue projections for 2024-2026 are 2.62 billion CNY, 3.20 billion CNY, and 3.84 billion CNY, respectively. The net profit attributable to shareholders is expected to be 271 million CNY, 344 million CNY, and 419 million CNY for the same period [5]. - The company’s gross margin is projected to remain stable around 25.8% for the coming years, with a net profit margin of approximately 10.3% in 2024 [5]. - The report indicates a steady increase in earnings per share (EPS), projected at 0.56 CNY, 0.71 CNY, and 0.87 CNY for 2024-2026 [2][5].