Jingwu Caixin | Citic Securities released a research report, pointing out that Quanfeng Holdings (02285) achieved revenue of 0.82 billion US dollars and a year-on-year increase of 10.5% in the first half of 2024, with adjusted net income of 0.062 billion US dollars and a year-on-year increase of 24.4%. This is mainly due to the stimulation of promotion activities to stimulate terminal demand, accelerate inventory reduction in the channels, and a significant increase in customer order volume. In the first half of 2024, the company's gross margin increased from 32.1% to 32.9%, mainly due to the recovery of scale and improvement of operational efficiency, as well as favorable raw material costs and exchange rates.
The bank stated that after the interest rate cut, it is expected to drive the recovery of demand for post-cyclical categories in the US real estate chain, coupled with the gradual release of consumer demand for new iterations. The bank believes that under the low base, the income side is expected to accelerate growth in the second half of 2024. In the medium and long term, with the increase in the penetration rate of lithium batteries, the bank is bullish on the company's continuous expansion of sales network, the expansion of product matrix through excellent product power, and the gradual construction of brand power. It is expected that the net income attributable to the parent company in 2024-2026 will be 0.12 billion US dollars, 0.14 billion US dollars, and 0.18 billion US dollars, respectively, with corresponding PE ratios of 11x, 9x, and 7x, and maintain a "recommended" rating.
