SF Diamond(300179) 中原证券·2024-08-01 11:30Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [2][15]. Core Views - The company's performance in the first half of 2024 fell short of expectations, with a revenue of 263 million yuan, a year-on-year decline of 4.80%. The net profit attributable to shareholders was 63 million yuan, down 21.58% year-on-year [3][4]. - The decline in revenue was primarily due to a decrease in oil and gas extraction business, attributed to a reduction in active drilling platforms in the U.S. [3][4]. - The CVD diamond project is expected to contribute positively to the company's performance in the second half of 2024, following its successful launch [4][5]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a gross margin of 53.60%, a decrease of 0.42 percentage points compared to the previous year. The net profit margin was 20.96%, down 6.95 percentage points year-on-year [4][6]. - The company’s operating cash flow decreased significantly by 92.05% year-on-year, primarily due to reduced sales collections and increased payments for material procurement [4][12]. Revenue Breakdown - Revenue from resource extraction and engineering construction decreased by 12.81% to 158 million yuan, while precision machining revenue increased by 4.68% to 89 million yuan. Other income rose by 59.73% to 16 million yuan [3][4]. Research and Development - The company maintained a high level of R&D investment, with an R&D expense ratio of 11.73%, which is an increase of 0.46 percentage points year-on-year. The company secured 53 patents during the reporting period [4][5]. Future Projections - Revenue projections for 2023-2025 are estimated at 566 million yuan, 583 million yuan, and 603 million yuan, respectively. Net profit is projected to be 133 million yuan, 146 million yuan, and 154 million yuan for the same years [5][6][11].