2024 年上半年收入同比高增长，第二季度超高纯靶材及精密零部件收入均创历史新高。2024H1 公司营收同增35.91%至16.27 亿元，其中Q2 单季度营收同增35.18%至8.55 亿元。分业务看，上半年超高纯靶材收入10.69 亿元，同比增长37.33%，毛利率为30.33%，同比上升1.63pct。公司积极推进超高纯金属溅射靶材扩产项目，产业链护城河不断拓宽。上半年精密零部件业务收入3.99 亿元，同比增长96.14%，其中第二季度实现收入2.24 亿元，创历史新高。上半年精密零部件业务毛利率为34.64%，同比上升3.21pct。随着公司多个生产基地投产，产品线迅速拓展带动营业收入持续增长。The company released its 2024 semi-annual report. The first half of 2024 achieved operating income of 1.627 billion yuan, an increase of 35.91% year on year; net profit to mother was 0.161 billion yuan, up 5.32% year on year; net profit after deducting non-return to mother was 0.17 billion yuan, up 73.49% year on year.
Revenue for the second quarter increased 35.18% to 0.855 billion yuan; net profit attributable to mother/net profit after deducting net profit from non-mother increased 4.61%/61.14% year over year to 0.101/0.1 billion yuan, respectively. I am optimistic about the company's research development in key fields of ultra-high purity targets and third-generation semiconductor materials, and maintain an increase in holdings rating.
Key points to support ratings
Revenue increased year-on-year in the first half of 2024, and revenue from ultra-high purity targets and precision components reached record highs in the second quarter. 2024H1's revenue also increased 35.91% to 1.627 billion yuan, of which Q2 revenue also increased 35.18% to 0.855 billion yuan in a single quarter. By business, revenue from ultra-high purity targets in the first half of the year was 1.069 billion yuan, up 37.33% year on year, and gross margin was 30.33%, up 1.63 pct year on year. The company actively promotes projects to expand production of ultra-high purity metal sputtering targets, and the moat of the industrial chain continues to expand. The precision parts business revenue in the first half of the year was 0.399 billion yuan, up 96.14% year on year. Among them, revenue of 0.224 billion yuan was achieved in the second quarter, a record high. The gross margin of the precision parts business in the first half of the year was 34.64%, up 3.21pct year on year. With the company's multiple production bases put into operation, the rapid expansion of the product line led to a continuous increase in revenue.
Gross margin increased, and fluctuations in non-main projects affected profits. 2024H1's gross margin was 31.00%, up 2.34pct year over year. Revenue growth led to an increase in cost investment efficiency. 2024H1's sales/management/R&D/finance expense ratios were 3.01%/6.56%/6.26%/0.11%, respectively, -0.08pct/-2.53pct/-0.24pct/+2.52pct, respectively. Among them, the year-on-year increase in financial expense ratio was mainly due to an increase in interest on the company's short-term loans and a decrease in exchange earnings. In addition, in the first half of the year, the company calculated asset impairment losses of 0.056 billion yuan (0.027 billion yuan in the same period last year); changes in fair value of investment stocks led to a fair value change loss of 0.024 billion yuan (revenue of 0.009 billion yuan in the same period last year); and other income of 0.029 billion yuan (0.016 billion yuan in the same period last year), mainly due to VAT deductions.
The company actively lays out ultra-high purity targets and key materials for third-generation semiconductors. In terms of target material business, the company has become a high-purity sputtering target supplier for well-known domestic and foreign manufacturers such as SMIC, TSMC, SK Hynix, BOE, etc., and is actively constructing the “0.052 million ultra-high purity metal sputtering target project for ultra-large-scale integrated circuits” and the “ultra-high-purity metal sputtering target project with an annual output of 0.018 million for integrated electricity”, which is expected to reach the scheduled state of use in the second half of 2024. Meanwhile, the establishment of a Korean subsidiary in 2023 and plans to build a new semiconductor target manufacturing plant in South Korea will help enhance the company's international competitiveness and supply chain stability. In terms of the precision parts business, as the product line continues to expand and a large number of new products advance from the trial stage to mass production, it is expected that precision parts will continue to be released. In terms of third-generation semiconductors, the holding subsidiary Ningbo Jiangfeng Tongxin has now completed the first domestic third-generation semiconductor power device module core material manufacturing production line with the world's advanced level and autonomous design. High-end copper-clad ceramic substrates have received initial market recognition; the holding subsidiary Jingfeng Xinchi has comprehensively laid out the silicon carbide epitaxial field, and silicon carbide epitaxial sheet products have been recognized by many customers. The company's diversified product system with ultra-high purity metal sputtering targets as the core, and the joint development of precision components and third-generation semiconductor materials is expected to continue to add momentum to the company's revenue and performance growth.
valuations
The company's two main businesses maintained good growth in the first half of the year, maintaining profit forecasts. EPS is expected to be 1.23 yuan, 1.68 yuan, and 2.28 yuan respectively in 2024-2026, corresponding to PE 41.2 times, 30.1 times, and 22.2 times, respectively. I am optimistic about the accelerated release of the company's ultra-high purity targets and precision components, and maintain an increase in holdings rating.
The main risks faced by ratings
Increased competition led to a decline in gross margin; the recovery in downstream demand fell short of expectations; and the commissioning of new projects fell short of expectations.
