Autowell(688516) 国信证券·2024-08-28 10:03Investment Rating - The report maintains an "Outperform" rating for Aotuo Wei (688516 SH) [1][3] Core Views - Aotuo Wei achieved significant revenue and profit growth in H1 2024 with revenue increasing by 75 48% YoY to 4 418 billion yuan and net profit attributable to shareholders growing by 47 19% YoY to 769 million yuan [1] - The company's order backlog increased by 41 11% YoY to 14 341 billion yuan as of June 30 2024 despite a slowdown in the photovoltaic industry [1] - Aotuo Wei successfully developed a new generation of ultra-high-speed 0BB (busbarless) string welding equipment and secured orders exceeding 10GW from leading customers [1] - The company is making breakthroughs in semiconductor packaging equipment with significant potential for domestic substitution [1] Financial Performance - In H1 2024 Aotuo Wei's gross margin and net margin were 33 81% and 18 19% respectively down by 2 83 pct and 2 27 pct YoY [1] - Q2 2024 revenue reached 2 453 billion yuan up 65 94% YoY with net profit attributable to shareholders of 436 million yuan a 44 80% YoY increase [1] - New orders in H1 2024 totaled 6 285 billion yuan up 8 74% YoY [1] Industry and Market Position - Aotuo Wei is a leader in photovoltaic string welding machines and is expanding into semiconductor and lithium battery sectors [1] - The semiconductor packaging equipment market is expected to grow by 10 0% in 2024 reaching 4 4 billion USD with significant opportunities for domestic substitution [1] Financial Forecasts - Revenue is projected to grow by 61 0% in 2024 reaching 10 145 billion yuan with net profit attributable to shareholders expected to increase by 45 7% to 1 830 billion yuan [2] - EPS is forecasted to be 8 13 yuan in 2024 with ROE expected to reach 35 8% [2] - The company's PE ratio is estimated at 12x 11x and 10x for 2024 2025 and 2026 respectively [1] Comparative Valuation - Aotuo Wei's 2024E PE ratio of 4 18x is lower than peers such as Meyer Burger (15 25x) and Dier Laser (9 34x) [7] - The company's 2024E PB ratio of 1 50x is also more attractive compared to industry averages [2]