baccaratmiffy| Rongtai Co., Ltd.(605133)2024 First Quarterly Report Comments: Q1 performance is in line with expectations Category expansion + global layout opens new growth

Event: the company releases its quarterly report of 2024BaccaratmiffyQ1 realized revenue 5Baccaratmiffy.100 million yuan, with a month-on-month ratio of + 17%, a net profit of 42 million yuan, a net profit of 37%, a non-return net profit of 36 million yuan, and a net profit of 44% with a month-on-month ratio of + 17%. Q1 performance was in line with expectations and profitability improved month-on-month. 1Q24's revenue-return net profit maintained steady growth over the same period last year, with a gross profit margin of 21% / net profit of 21% / net profit of 8.0% in a single quarter, year-on-year-1.2/-0.5pcts, month-on-month + 3.0/+1.7pcts, and profitability improved significantly. In terms of expenses, the company's sales / management / R & D / financial expense rates are 1.6%, 8.5%, 4.7%, 0.3%,-0.3/+0.8/-0.04/+1.0pcts, + 0.1/+1.5/+0.5/+1.6pcts, respectively. Domestic and foreign production capacity continues to increase, overseas business accelerated to enter the performance cash period. 1) Yangzhou new factory: the company starts the refinancing fixed increase project, with a total investment of 880 million yuan, and plans to introduce 3000-9000T medium and large die casting machine equipment to achieve full coverage of new energy three electrical components, structural components, integrated die castings and other products. 2) Mexican factory: the company has successively increased its capital by 230.27 billion yuan through IPO and convertible bonds, with an annual production capacity of 2.67 million aluminum alloy shells, with an average annual income of 520 million yuan. In 2023, Mexican factories achieved annual revenue of 370 million yuan, + 34% year-on-year, and net profit of-50 million yuan, which is expected to be mainly due to the climbing of new factory capacity, Mexican exchange gains and losses and other factors. At present, the second phase of the plant project has been put into production at the end of 2023 and is expected to accelerate into the performance cash period in the future. 3) Thai factory: the company plans to invest no more than 400 million yuan to build a Thai factory, mainly producing aluminum alloy die castings and related moulds, fixtures and other products. It is expected that the existing business scale will be further expanded after the implementation of the project. Accelerate the expansion of Southeast Asian and global markets. Positioning "steering system + new energy vehicles", category expansion enables new growth. As the domestic EPS steering shell leader, the company has formed a complete set with BYD, Tesla, ideal and other head new energy mainframe factories since 2022, and the products have been gradually expanded to the field of new energy three electricity and car body structure parts. In 2023, the company's share of revenue from new energy vehicle products increased to 24%, realizing the two-way expansion of customers and products. Investment advice: optimistic about the company category expansion + global layout to start new growth. We estimate that from 2024 to 2026, the company's revenue will be 29.8, 40.7 / 5.04 billion yuan respectively, compared with the same period last year, + 48%, 36%, 24%, and the net profit will be 2.5 million, 34, 000 and 27%, respectively. Maintain the "buy" rating. Risk tips: new energy vehicle sales fall short of expectations; Sino-US trade friction risk; raw material price fluctuations. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.