Event: The company released the 2024H1 semi-annual report
With 2024H1, the company achieved revenue of 0.683 billion yuan, a decrease of 35.51%; net profit to mother of 0.06 billion yuan, an increase of 21.31%; in 2024 Q2, the company achieved revenue of 0.346 billion yuan, a decrease of 48.34%, and a net profit of 0.031 billion yuan to mother, a decrease of 2.65%, mainly due to the divestment of the oil and gas drilling business sector.
Electrolytic copper foil equipment goes overseas at an accelerated pace and actively expands overseas customers
The number of overseas customers is considerable. The company has established stable cooperative relationships with many overseas customers, covering key regions such as Europe, the Middle East, and Southeast Asia. As overseas countries increase their localization requirements for lithium battery materials, we expect the number and scale of subsequent orders to continue to grow.
Leveraging the advantages of vacuum coating technology to accelerate the shipment of composite fluid collection equipment in terms of ultra-precision vacuum coating equipment, Hongtian Technology pioneered the “one-step full-dry method” process. Currently, the company's product matrix is complete, equipped with vacuum magnetron sputtering coating machines (double-sided metal plating materials), vacuum evaporation coating machines (double-sided aluminum plating), and vacuum magnetron sputtering evaporation composite coating machines (can be copper-plated and aluminum on both sides). In March, the company's first domestic “one-step full-dry” vacuum magnetron sputtering coating machine was successfully launched; in July, Hongtian Technology's composite aluminum foil vacuum coating equipment was also successfully shipped.
We believe that as the European Battery Act increases the requirements for battery safety, composite collectors are expected to accelerate penetration and drive the volume of upstream composite fluid collector equipment.
Capital increases have already been achieved, and the results of diversified management are beginning to be seen in the joint venture Ruishe
The company increased its capital to expand production of composite fluid collector welding equipment business, and at the same time entered equipment manufacturing in the pan-semiconductor field with a joint venture with Ruishi-Micro. As of the first half of the year, Dagniu and Ruishiwei have achieved breakthroughs in some products and are looking forward to order performance in the second half of the year. At the same time, the company focuses on platform-based high-end equipment layout and accelerates breakthroughs in other fields in an epitaxial manner, with a view to long-term development.
Investment advice: The company is expected to completely divest its traditional business in 24, and Hongtian Technology will contribute mainly to growth.
Considering that the company's lithium battery equipment business is under pressure, we adjusted the company's 24/25 return profit to 0.26/0.31 billion yuan (previous value 0.3/0.5 billion yuan), corresponding to PE14/12 times, to maintain the purchase rating.
Risk warning: changes in macro-environmental policies; rising raw material costs; increased industry competition; risk of product upgrading and replacement of emerging technologies.