KTK GROUP(603680) Guohai Securities·2024-09-01 03:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][3]. Core Insights - The company has shown steady growth in performance and orders, with a promising outlook for its heavy machinery sector [1]. - In H1 2024, the company achieved a revenue of 1.962 billion yuan, representing a year-on-year increase of 12.99%, and a net profit attributable to shareholders of 147 million yuan, up 25.70% year-on-year [1]. - The company's gross margin improved to 25.56%, an increase of 1.12 percentage points year-on-year, while the net profit margin rose to 7.06%, up 0.67 percentage points year-on-year [1]. Financial Performance Summary - In H1 2024, the company reported a revenue of 1.962 billion yuan, with a net profit of 147 million yuan and a non-recurring net profit of 139 million yuan [1]. - The company’s revenue from urban rail transit vehicle products reached 1.119 billion yuan, a year-on-year increase of 30.49% [1]. - The company signed new contracts/orders exceeding 2.6 billion yuan in H1 2024, reflecting an 18% year-on-year growth [1]. Business Segment Analysis - The company’s urban rail transit vehicle products have a gross margin of 23.58%, while the gross margin for ordinary passenger vehicle products is 30.63% [1]. - The heavy machinery segment is expected to benefit from maintenance demand, with new products like large excavators and wide-body dump trucks supporting future growth [3]. Earnings Forecast - The company is projected to achieve revenues of 4.107 billion yuan, 4.538 billion yuan, and 5.050 billion yuan for the years 2024, 2025, and 2026, respectively [4][6]. - The expected net profits for the same years are 358 million yuan, 434 million yuan, and 527 million yuan, indicating a strong growth trajectory [4][6].