Huitian New Materials(300041) 光大证券·2024-08-21 14:37Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company's revenue for H1 2024 was CNY 2.013 billion, a year-on-year decrease of 3.26%, while the net profit attributable to shareholders was CNY 137 million, down 38.76% year-on-year. In Q2 2024, revenue increased by 4.02% year-on-year to CNY 1.043 billion, but net profit decreased by 44.41% year-on-year to CNY 57 million [1]. - The decline in performance is attributed to a decrease in product prices in the photovoltaic industry. The main products, including silicone rubber and polyurethane adhesives, saw revenue changes of -4.14%, +10.11%, and -38.70% respectively, with corresponding gross margins also declining [1]. - The company has seen a 31.53% year-on-year increase in adhesive product sales volume, with significant growth in the photovoltaic and consumer electronics sectors [1]. Summary by Sections Financial Performance - H1 2024 revenue: CNY 2.013 billion, down 3.26% YoY - H1 2024 net profit: CNY 137 million, down 38.76% YoY - Q2 2024 revenue: CNY 1.043 billion, up 4.02% YoY, net profit: CNY 57 million, down 44.41% YoY [1]. Product Performance - Main products revenue: silicone rubber (CNY 1.036 billion, -4.14% YoY), polyurethane adhesives (CNY 416 million, +10.11% YoY), non-adhesive products (CNY 287 million, -38.70% YoY) [1]. - Gross margins: silicone rubber (17.73%, -8.86 pct), polyurethane adhesives (20.83%, -4.58 pct), non-adhesive products (11.31%, -9.26 pct) [1]. Market Position and Strategy - The company is optimizing its domestic and international production capacity, with new bases in Xiangyang and Guangzhou, and is expanding its overseas production in Vietnam [1]. - The company maintains a strong market share in the photovoltaic sector, with over 20% growth in silicone sales, and significant growth in consumer electronics and automotive sectors [1]. Profit Forecast and Valuation - The profit forecast for 2024-2026 has been revised downwards, with expected net profits of CNY 258 million (down 26.9%), CNY 309 million (down 24.0%), and CNY 351 million (down 29.9%) respectively [1]. - Despite the challenges, the company is expected to benefit from strong downstream demand in the photovoltaic and lithium battery sectors, maintaining a positive outlook [1].