KSHG(SH:605333) Guoxin Securities·2024-08-31 10:30Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Views - The company achieved a significant increase in revenue and net profit in Q2 2024, driven by the rapid growth of the electric vehicle market, which boosted the automotive wiring harness industry [2][4] - The company is focusing on expanding its customer base and enhancing production capacity, particularly in the high-voltage wiring harness segment, to capitalize on the growing demand from new energy vehicles [3][4] - The company's gross margin and net margin improved significantly in Q2 2024, reflecting effective cost control and increased sales volume [3][4] Financial Performance Summary - Revenue for H1 2024 reached 34.18 billion yuan, a year-on-year increase of 142.03%, with net profit of 2.55 billion yuan, up 721.73% [2][4] - In Q2 2024, revenue was 18.85 billion yuan, a year-on-year increase of 148.87%, and net profit was 1.54 billion yuan, up 1057.51% [2][4] - The company's gross margin for Q2 2024 was 16.51%, up 4.98 percentage points year-on-year, while the net margin was 8.18%, up 10.31 percentage points year-on-year [3][4] Earnings Forecast - The company expects revenues of 74.8 billion yuan, 95.2 billion yuan, and 121.6 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 5.8 billion yuan, 7.4 billion yuan, and 9.4 billion yuan for the same years [3][4][20]