VT Industries(300707) Huachuang Securities·2024-09-02 06:15Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][17]. Core Views - The company has entered a fast growth phase driven by its dual business model of molds and stamping parts, with significant profit growth in the first half of 2024 [1]. - The company's revenue for the first half of 2024 reached 448 million yuan, a year-over-year increase of 25.44%, with a gross margin of 22.39% [1]. - The net profit attributable to shareholders for the same period was 27 million yuan, reflecting a substantial year-over-year increase of 175.72% [1]. Financial Performance Summary - The company achieved a revenue of 2.08 billion yuan in Q2 2024, with a year-over-year growth of 4.33% but a quarter-over-quarter decline of 13.33% [1]. - The net profit attributable to shareholders in Q2 was 5 million yuan, showing a year-over-year decrease of 65.70% [1]. - The company’s mold revenue in the first half of 2024 was 247 million yuan, a significant increase of 124.33% compared to the previous year [1]. Business Growth Drivers - The growth in profit is primarily attributed to the expansion of overseas stamping mold business, particularly in North America and Europe [1]. - The company is actively increasing production capacity in the U.S. and Germany to meet the growing demand from overseas markets [1]. - The stamping parts market is projected to have a total addressable market of 816.3 billion yuan globally, with the company having a strong foothold in this sector [1]. Profit Forecast and Valuation - The company is expected to achieve net profits of 101 million yuan, 151 million yuan, and 206 million yuan for the years 2024, 2025, and 2026, respectively [2]. - Based on comparable companies' valuations, the report assigns a target price of 15.48 yuan for the company, corresponding to an 18x PE ratio for 2025 [1][2].