改性材料业务增长稳健，新能源电池业务拖累业绩分业务看， 改性塑料业务实现营收28.85 亿元，同比增长8.87%，毛利率18.30%，同比提升1.38 个百分点；新能源电池业务实现营收8.65 亿元，同比下降38.08%，毛利率2.34%，同比下降10.46 个百分点。新能源电池分产品看，三元圆柱电池实现营收5.52 亿元，同比增长58.82%，毛利率1.35%，同比下降15.55 个百分点；磷酸铁锂电池实现营收2.83 亿元，同比下降71.60%，毛利率2.50%，同比下降7.82 个百分点。Investment events
In the first half of 2024, the company achieved operating income of 3.75 billion yuan, a year-on-year decrease of 7.34%; net profit to mother was 0.144 billion yuan, a year-on-year decrease of 28.47%.
Key points of investment
The modified materials business grew steadily. The new energy battery business dragged down performance by business. The modified plastics business achieved revenue of 2.885 billion yuan, up 8.87% year on year, gross profit margin of 18.30%, up 1.38 percentage points year on year; the new energy battery business achieved revenue of 0.865 billion yuan, down 38.08% year on year, gross profit margin 2.34%, down 10.46 percentage points year on year. Looking at new energy battery products, ternary cylindrical batteries achieved revenue of 0.552 billion yuan, a year-on-year increase of 58.82%, and a gross profit margin of 1.35%, a year-on-year decrease of 15.55 percentage points; lithium iron phosphate batteries achieved revenue of 0.283 billion yuan, a year-on-year decrease of 71.60%, a gross profit margin of 2.50%, and a year-on-year decrease of 7.82 percentage points.
The modified materials business is actively going overseas, and the release of production capacity is driving steady growth. The company has become one of the leading enterprises in the domestic modified materials industry and is the preferred supplier for major domestic and foreign automobile OEMs. In order to speed up overseas business connections, in the first half of 2024, the company began preparations to build production bases in Mexico and Thailand, respectively, to continuously optimize the global supply chain layout and accelerate the company's global development process. As of the semi-annual report, the company has 6 new material manufacturing bases in Qingpu, Shanghai, Jinshan, Zhejiang, Jiaxing, Chongqing, Foshan, Guangdong, and South Carolina in the US. It has built a production capacity of 0.43 million tons and a production capacity of 0.2 million tons under construction. With the further release of production capacity in the new materials business, the company's automotive modified materials business is expected to achieve steady growth.
Cooperate with Weilan New Energy to expand multi-scenario applications such as new energy vehicles and low-altitude flight. On August 28, the company and Beijing Weilan New Energy signed a strategic cooperation agreement. The two sides will develop solid state battery products with different specifications and systems with characteristics such as high power, high safety, ultra-low temperature, and high performance in response to the needs of different new energy application scenarios such as energy storage, new energy vehicles, low altitude flight, 3C consumption, and special vehicles. This cooperation is expected to enhance the company's position in the lightweight materials and solid-state battery market and have a positive impact on the company's business development.
Profit forecasting and valuation
The profit forecast was lowered and the “buy” rating was maintained. Considering the intensification of competition in the new energy battery industry and the decline in product prices, we carefully lowered the company's net profit to mother in 2024-2026 to 0.301, 0.364, and 0.444 billion yuan (0.537, 0.796, and 0.933 billion yuan, respectively before the reduction), corresponding EPS was 0.27, 0.33, and 0.40 yuan, respectively, and the corresponding PE was 27, 22, and 18 times. Maintain a “buy” rating.
Risk warning
LCP business expansion falls short of expectations, fluctuating material costs, and increased competition risks.