The company released its semi-annual report: 24H1 achieved operating income of 0.624 billion yuan, +11.5% year-on-year, realized net profit of 0.056 billion yuan, +6.3% year-on-year, and realized net profit deducted from non-mother 0.051 billion yuan, or +27.2% year-on-year. 24Q2 achieved operating income of 0.337 billion yuan, +9.2%/+17.3% YoY/M, realized net profit of 0.031 billion yuan, +1.2%/+27.7% YoY/+27.7%, net profit excluding non-return to mother was 0.03 billion yuan, +38.9%/+40.1% YoY/M.
The company's overall gross margin increased significantly. 24H1's comprehensive gross profit margin was 23.8%, +3.45 pct year on year, of which the main business gross margin was 24.99%, +3.51 pct year on year. The main reason was that the company promoted various quality and efficiency management, increased the application of new technology and new process methods through digital optimization process management, strengthened system operation and product quality management, and achieved remarkable results in improving all-factor production efficiency.
The company's international market business is growing steadily. 24H1's export revenue was 0.173 billion yuan, +27.79% over the same period, in the field of high-conductivity high-strength copper alloy materials and products. The company focused on laying out materials and products for the semiconductor industry and generator industry in the US, Europe, Japan and other market regions; in the field of medium and high voltage electrical contact materials and products, the company achieved breakthroughs in the application and verification of new technologies and products; and in the field of CT and DR ball tube materials and components, deepening business cooperation with industry benchmarks such as Siemens and Varex.
Adhere to R&D and innovation-driven development, and cultivate segmented racetracks to build moats. 24H1 has accumulated R&D expenses of 32.4357 million yuan, +30.61% over the same period; the company and downstream benchmark customers verified the process and application of new technology contact materials for 126KV and 252KV high-voltage vacuum arc extinguishing chambers. Benchmark customers such as Siemens Energy and Baoguang applied copper-chromium-niobium materials to high-voltage vacuum arc extinguishing chamber conductors and are undergoing process verification. Chips, optical modules, data centers, new power equipment, etc. are putting forward new technical requirements for thermal management and heat dissipation of devices and materials, and the company is actively developing research and development.
Maintain an “overweight” investment rating. The company is expected to achieve net profit of 0.13/0.18/0.24 billion yuan in 2024-2026, corresponding price-earnings ratios of 41/30/22 times, respectively, maintaining an “increase in holdings” investment rating.
Risk warning: risk of stagnation or termination of new construction projects, risk of overcapacity, risk of technological upgrading and R&D, risk of cost increase, risk of market uncertainty, risk of industry risk, risk of exchange rate fluctuations, risk of macro-environment changes, etc.