GONGNIU(603195) 华泰证券·2024-09-29 02:03Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 93.42 [2][3]. Core Views - The company's main operations are stable, and there is confidence in high-quality growth. Despite the current downturn in housing renovation demand, the company is optimizing its business layout and expanding its development depth. The revenue from the smart electrical lighting business has shown steady growth, while the electrical connection business remains resilient. The renewable energy business is expected to continue its growth trajectory [3][4][5]. Summary by Sections Smart Electrical Lighting Business - The smart electrical lighting business is closely tied to new home sales. To counteract the pressure from weaker-than-expected new home sales and completions, the company is focusing on retail and installation enterprises, promoting the construction of all-category flagship stores and expanding installation channels. The revenue from this segment increased by 12% year-on-year in the first half of the year, indicating the effectiveness of channel upgrades [4]. Electrical Connection Business - The company is innovating and upgrading products to cater to the younger consumer demographic and the diversification of usage scenarios. New product categories such as track sockets and travel converters have gained popularity among young consumers online. The marketing strategy has been optimized to enhance brand youthfulness through multi-channel exposure on social media platforms like Douyin and Bilibili [5]. Renewable Energy Business - The company is expanding its channels to drive growth in the renewable energy sector. In May, the company signed a brand ambassador for its charging piles and guns, launching various promotional activities. As of July, the number of private charging piles in China reached 7.394 million, an increase of 1.524 million since the beginning of the year. With the growth in electric vehicle sales, the renewable energy business is expected to enter a harvest period [6]. Global Expansion Strategy - The company is actively exploring globalization by innovating products based on local market demands and enhancing local sales team capabilities. It has developed and launched several new products for markets in Vietnam, the Philippines, and Thailand, receiving positive market feedback. The company has also established a preliminary distribution network in Southeast Asia through nearly 20 local distributors and is beginning to open online flagship stores in various regions [7].