2024H1 公司毛利率为26.2%，同比-21pct，净利率为10.3%，同比-18pct，主要系公司所处的光伏行业新扩产规模大幅收缩;期间费用率为16.2%，同比+1pct，其中销售费用率为2.0%，同比-0.1pct，管理费用率（含研发）为13.6%。同比+1pct，财务费用率为0.7%，同比+0.1pct。单季度来看，2024Q2 毛利率为19.0%，同比-31pct，环比-13pct；净利率为5.0%，同比-25pct，环比-10pct。2024Q2 单季度期间费用率为14.7%，同比-2pct，环比-3pct，其中销售费用率为0.7%，同比-2pct，环比-2pct，管理费用率（含研发）为13.1%，同比-1pct，环比-1pct，财务费用率为0.8%，同比+0.3pct，环比+0.3pct。occurrences
The company released its semi-annual report. 2024H1's revenue was 2.65 billion yuan, +5% year over year; net profit to mother was 0.27 billion yuan, -62% year over year; net profit after deducting non-return to mother was 0.24 billion yuan, -66% year over year. The company's overall shipping scale achieved a significant increase over the previous period, but due to the decline in overall prices in the photovoltaic industry chain, the price of current products dropped sharply compared to the same period last year. Looking at a single quarter, 2024Q2 achieved revenue of 1.23 billion yuan, -3% year over year; net profit to mother was 0.06 billion yuan, -84% year over year; net profit after deducting non-return to mother was 0.05 billion yuan, -86% year over year.
The industry's production capacity stage has been cleared, and the company's profitability is under pressure in the short term
2024H1's gross margin was 26.2%, -21pct year on year, net margin was 10.3%, year-on-year -18pct, mainly due to a sharp contraction in the scale of new production expansion in the photovoltaic industry where the company is located; the cost ratio for the period was 16.2%, +1pct year on year, of which the sales expense ratio was 2.0%, -0.1 pct year on year, and the management expense ratio (including R&D) was 13.6%. +1pct year on year, financial expense ratio was 0.7%, and +0.1pct year over year. Looking at a single quarter, 2024Q2 gross margin was 19.0%, -31pct year over month, -13pct; net margin was 5.0%, -25pct yoy, -10pct month-on-month. The 2024Q2 cost rate for the single quarter period was 14.7%, -2pct year on month, of which the sales expense ratio was 0.7%, -2pct year on month, 2pct month on month, management expense ratio (including R&D) was 13.1%, -1 pct year on month, and the financial expense ratio was 0.8%, +0.3 pct year on month, and +0.3 pct month-on-month.
Tungsten diamond wire is leading the way, and production capacity of slicing foundry has been released
The company formed a horizontal integration of “equipment+consumables+slicing foundry” to promote technological leadership. In terms of slicing equipment, as of June 30, 2024, the company had orders of 1.29 billion yuan (tax included) for photovoltaic cutting equipment. In terms of diamond wire, the company introduced a tungsten wire bus cold drawing process in the industry, leading the industry to launch a 21-μm linear tungsten wire. The company's diamond wire shipment scale is about 29 million kilometers (including personal use), of which the tungsten wire shipment scale is about 6 million kilometers (including personal use). In terms of chip foundry, the company launched an industrialized layout in the cutting and processing of large photovoltaic silicon wafers in 2021. Currently, it has fully implemented a production capacity of over 60 GW, and effective shipments of about 19 GW in the first half of 2024.
High moat and steady profit growth. Maintaining the “purchase” rating, we expect the company's revenue for 2024-2026 to be 6.36/8/9.88 billion yuan, with year-on-year growth rates of +3%/+26%/+23%, respectively; net profit to mother of 0.55/0.86/1.16 billion yuan, respectively, with year-on-year growth rates of -62%/+57%/+34%, respectively. We believe that the company has a high moat and steady profit growth, maintaining a “buy” rating.
Risk warning: Downstream production expansion falls short of expectations, and new product expansion falls short of expectations.