ToLand(300855) 民生证券·2024-08-15 16:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.31 CNY, indicating a positive outlook for the stock [1]. Core Views - The company's performance in the first half of 2024 shows steady growth, with a net profit of 191 million CNY, representing a year-on-year increase of 7.1% [1]. - Revenue for the first half of 2024 reached 731 million CNY, up 6.1% year-on-year, reflecting stable operational performance [1]. - The company is recognized as a core supplier of high-temperature alloys and is actively extending its industrial chain into downstream processing, which is expected to open up growth opportunities [1][2]. Financial Performance Summary - Revenue and Profitability: - The company achieved a revenue of 380 million CNY in 1H24, with a year-on-year growth of 6.4%. The net profit for the same period was 102 million CNY, up 8.7% year-on-year [1]. - The gross profit margin improved to 38.3%, an increase of 1.1 percentage points year-on-year [1]. - Product Performance: - Revenue from deformed high-temperature alloys increased by 30.8% year-on-year, contributing significantly to the overall revenue [1]. - The gross margin for various alloy products has shown improvement, indicating better cost management and pricing strategies [1]. - Cash Flow and Expenses: - Operating cash flow improved significantly, reaching 230 million CNY, attributed to better sales collection [1]. - R&D expenses increased by 20% year-on-year, reflecting the company's commitment to innovation and product development [1]. Future Outlook - The company is projected to achieve net profits of 420 million CNY, 530 million CNY, and 680 million CNY for the years 2024, 2025, and 2026 respectively, with corresponding PE ratios of 22x, 17x, and 13x [1][2]. - The report emphasizes the sustained high demand in the downstream machining sector, which is expected to drive further growth [1].