ToLand(300855) 天风证券·2024-08-17 11:07Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [3][11]. Core Insights - The company's main business in high-temperature alloys is experiencing steady growth, supported by the rapid development of downstream applications in aviation engines and gas turbines, which is expected to enhance operational performance and profitability [1][5]. - The company has completed its IPO fundraising projects, leading to increased production capacity and sales volume, which are anticipated to continue growing [1][5]. - The report highlights a significant improvement in profitability, with a gross margin of 38.34% and a net margin of 26.16% for the first half of 2024, reflecting effective cost control and ongoing R&D efforts [1][5]. Financial Performance Summary - For H1 2024, the company achieved revenue of 731 million yuan, a year-on-year increase of 6.07%, and a net profit of 191 million yuan, up 7.11% year-on-year [1][5]. - The second quarter alone saw revenue of 382 million yuan, a 6.41% increase year-on-year and a 9.07% increase quarter-on-quarter [1]. - The cash flow from operating activities reached 231 million yuan, a remarkable increase of 450.65% year-on-year, attributed to timely sales collections [1][5]. Segment Performance - The revenue from casting high-temperature alloys was 279 million yuan, down 19.45% year-on-year, while the revenue from deformed high-temperature alloys increased by 30.79% to 277 million yuan [1]. - Special stainless steel revenue was 39 million yuan, down 5.4%, while other alloy products saw a revenue increase of 21.13% to 88 million yuan [1]. Capacity Expansion and Development - The company has added significant production capacity through its IPO projects, including 1,000 tons of ultra-pure high-performance high-temperature alloys and 3,300 complex thin-walled high-temperature alloy components annually [1][5]. - The construction of an automated production line for small and medium-sized aviation components is progressing well, with 44.86% completion as of H1 2024 [1][5]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at 1.68 billion yuan, 2.08 billion yuan, and 2.53 billion yuan, respectively, with corresponding net profits of 404 million yuan, 513 million yuan, and 629 million yuan [2][5].