PPF(300258) 国泰君安·2024-09-03 08:41Investment Rating - The report maintains a "Buy" rating for the company and lowers the target price to 9.18 CNY from the previous 12.01 CNY [4][11]. Core Views - The company's mid-year performance was weak, with Q2 earnings growth lagging behind revenue due to multiple factors impacting profitability. The trend of product upgrades continues, and globalization is steadily advancing, with expectations for new business growth [3][4]. Financial Summary - For the first half of 2024, the company achieved revenue of 1.01 billion CNY, a year-on-year increase of 6.3%, while net profit attributable to shareholders was 94 million CNY, down 27.0% year-on-year. In Q2 2024, revenue was 500 million CNY, up 0.8% year-on-year but down 0.06% quarter-on-quarter, with net profit of 50 million CNY, down 43.1% year-on-year and down 0.6% quarter-on-quarter [4][5]. - The gross margin for Q2 2024 was 23.8%, a decrease of 1.02 percentage points year-on-year and 3.53 percentage points quarter-on-quarter. The net margin was 9.3%, down 7.06 percentage points year-on-year and 0.06 percentage points quarter-on-quarter [4][5]. - The company has adjusted its EPS forecasts for 2024-2026 to 0.51 CNY (-0.1), 0.61 CNY (-0.13), and 0.75 CNY (-0.14) respectively, based on industry price pressures and significant short-term capacity investments [4][11]. Business Outlook - The company is accelerating the establishment of overseas production bases, with the Thai factory expected to begin production in Q4 2024, aiming for production capacity in Q1 2025. The company is also exploring other overseas bases for future expansion [4][5]. - The focus remains on expanding capabilities in precision forging and actively participating in lightweight, main reducer, and robotics sectors, with hopes for new business growth to create a new growth curve [4][5].