The company announced its 2024 semi-annual results forecast. It is expected to achieve net profit of 40.1 million yuan to 45 million yuan in the first half of 2024, up 0.19% to 12.43% year on year, and net profit after deducting 38.9 million yuan to 43.8 million yuan, up 42.35% to 60.28% year on year. Of these, Q2 is expected to achieve net profit after deducting non-return mother about 24.84 million yuan (median), an increase of about 50% month-on-month, mainly due to good demand performance for terminal vehicles The company achieved significant growth in sales of core technology products such as CMD and gas management, and the performance was in line with expectations.
Demand for terminal vehicles was outstanding in the first half of the year, and core technology products such as CMD and gas management drove the company's business performance to achieve rapid growth. In the first half of 2024, the terminal car market performed well, driven by export demand. According to China Automobile Association data, automobile production and sales in the first half of 2024 reached 1389.1 units and 14.04.7 million units respectively, up 4.9% and 6.1% year on year, respectively. Among them, 2.793 million vehicles were exported, up 30.5% year on year. At present, the company's products such as CMD and gas management have been adopted by many automotive lighting manufacturers and automotive OEMs. In 2023, CMD achieved annual revenue of 50.47 million yuan, a sharp increase of 147% over the previous year. Guided by a new round of “car trade-in” stimulus policies, it is expected to continue to drive the steady growth of the company's performance.
I am optimistic that the company will continue to expand in fields such as CMD. The company's CMD is the core beneficiary of the intelligent trend of car lights. It combines ePTFE film with desiccant to systematically solve condensation problems in small confined spaces. Compared with traditional anti-fog solutions (breathable film, ventilation plug, anti-fog coating, etc.), it can greatly reduce application costs while systematically solving condensation problems in small confined spaces. The current trend of intelligent headlights has been determined. If headlights are upgraded from ordinary LEDs to ADB and DLP headlights, the value of bicycles is expected to increase dramatically, and the demand for anti-fog solutions is even more urgent. In addition, the company is actively expanding new niche markets (1) in the medical field, where the company has achieved zero sales breakthroughs in membrane materials used in the medical industry; (2) in the aerospace sector, the company's TRT membranes have localized raw materials and production equipment; and (3) the subsidiary Hydrogen New Energy Proton Exchange Membranes have been verified by clients and shipped in batches.
Maintain profit forecasts and maintain a “buy” rating. With the introduction of a new round of automobile consumption policies and the expansion of niche markets such as aerospace, the company's core product, ePTFE membrane, is expected to achieve steady growth. We maintain our profit forecast. We expect the company's net profit to mother for 2024-2026 to be 1.34/2.04/0.259 billion yuan, respectively. The corresponding PE is 15/10/8X, maintaining a “buy” rating.
Risk warning: Project construction falls short of expectations, and the valuation model and profit expectations fall short of expectations.