OTIC(000962) 中邮证券·2024-08-28 04:30Investment Rating - The report maintains a "Buy" rating for the company, reflecting a positive outlook on its future performance [2] Core Views - The company's product structure optimization and strong demand are driving capacity expansion [3] - Revenue for H1 2024 reached 593 million yuan, up 8.41% YoY, while net profit attributable to the parent company was 112 million yuan, down 5.04% YoY [3] - Q2 2024 revenue was 334 million yuan, up 30.98% YoY and 29.46% QoQ, with net profit attributable to the parent company at 62 million yuan, up 5.08% YoY and 24.00% QoQ [3] - Tantalum and niobium alloy products generated 578 million yuan in revenue, up 7.69% YoY, with a gross profit of 112 million yuan, up 19.45% YoY, and a gross margin of 19.30%, up 1.90 percentage points YoY [3] - The company plans to expand niobium superconducting cavity capacity to 500 units/year, with expected annual revenue of 150 million yuan upon full production [3] - The company is investing 111 million yuan to build a new tantalum and niobium pyrometallurgical product line, further enhancing production capacity [3] Financial Projections - Revenue for 2024/2025/2026 is projected to be 1.309/1.572/1.856 billion yuan, with net profit attributable to the parent company at 243/292/328 million yuan, representing YoY growth of 30.02%/20.00%/12.43% [3] - EPS for 2024/2025/2026 is expected to be 0.48/0.58/0.65 yuan, with corresponding P/E ratios of 20.58/17.15/15.25x [3] - EBITDA for 2024/2025/2026 is projected to be 323.48/388.23/435.30 million yuan [5] - The company's gross margin is expected to improve from 17.8% in 2023 to 25.5% in 2026, with net margin remaining stable around 18% [7] Operational Highlights - The company's sales expense ratio decreased by 0.19 percentage points YoY, while R&D expense ratio increased by 0.63 percentage points due to higher investment in technology development [3] - The company's investment income from its stake in Northwest Rare Metal Materials Research Institute Ningxia Co Ltd was 44 million yuan, down 12% YoY [3] - The company's financial expense ratio increased by 0.76 percentage points YoY, mainly due to exchange rate fluctuations [3]