Kingwu Finance News | Haitong International issued a research report stating that Haitian International (01882) has released its mid-term performance for 2024. The company's 1H24 revenue is 8 billion yuan, a year-on-year increase of 25.7% and a quarter-on-quarter increase of 19.9%. Net income attributable to the parent company is 1.52 billion yuan, a year-on-year increase of 23.5% and a quarter-on-quarter increase of 20.7%. By region, the company's domestic revenue in 1H24 is 5.18 billion yuan, a year-on-year increase of 33.7%, while overseas revenue is 2.84 billion yuan, a year-on-year increase of 13.2%. The bank believes that the company's domestic revenue has grown significantly in the first half of the year, based on 1) the export recovery of industries such as home appliances, 3C, and auto parts, which has driven domestic export-oriented customer demand, and 2) the demand for machine updates. At the company level, the comprehensive promotion of the fifth-generation aircraft and the advancement of diversified product strategies have significantly increased market share.

In its outlook for the second half of the year, the company points out that the global industrial chain is accelerating restructuring, and some overseas regions have opportunities for high-speed development. In the domestic market, with the implementation of policies to expand domestic demand, such as equipment upgrades and the replacement of consumer goods, as well as the domestic manufacturing industry benefiting from overseas demand during the global manufacturing inventory replenishment cycle, the domestic economy is expected to continue to accelerate its recovery.

The bank stated that the current upcycle of the injection machine industry, which started in 2023, is being driven by strong overseas end-market demand, while domestic demand recovery is insufficient. The company has significantly increased its market share and further consolidated its leading position through the promotion of new products and the implementation of new sales strategies. Looking ahead, with the upward inventory cycle in key overseas markets and the continued demand for export-oriented injection machines in China, as well as the improvement in domestic demand supported by domestic policies, the return of manufacturing from developed countries and the economic growth of developing countries will provide longer-term driving forces. As the company deepens its market segmentation in China and expands its capacity and supply chain system overseas, domestic growth is expected to continue, and overseas growth is more certain.

The bank has raised the company's revenue forecast for 2024 and 2025 to 16.4 billion yuan and 17.9 billion yuan, respectively, and raised the net profit forecast to 3.1 billion yuan and 3.5 billion yuan, respectively, and introduced a profit forecast for 2026. The bank values the company at 12 times PE ratio for 2025 and has raised the target price to 28.6HKD (previously 24.2HKD for 2024 with a 12 times PE ratio), maintaining an "outperform" rating on the stock.