SPG(600529) 光大证券·2024-08-28 09:12Investment Rating - The report maintains a "Buy" rating for Shandong Pharmaceutical Glass [4]. Core Views - Shandong Pharmaceutical Glass continues to experience high growth, with significant improvements in profitability. The company reported a revenue of 2.59 billion yuan and a net profit attributable to shareholders of 480 million yuan for the first half of 2024, representing year-on-year increases of 6.8% and 23.3%, respectively [2]. - The gross margin for the first half of 2024 increased significantly to 32.4%, up 5.4 percentage points year-on-year, primarily due to the high growth rate of high-margin borosilicate molded bottles and a decline in the prices of some raw materials [2]. - The company is actively expanding production capacity to meet market demand, with new furnaces launched in early 2024 to support growth in various product lines [2]. Summary by Sections Financial Performance - For the first half of 2024, Shandong Pharmaceutical Glass achieved a revenue of 2.59 billion yuan, a net profit of 480 million yuan, and a net profit excluding non-recurring items of 460 million yuan, with respective year-on-year growth rates of 6.8%, 23.3%, and 24.3% [2]. - The operating cash flow for the first half of 2024 was 590 million yuan, reflecting a year-on-year increase of 41.5% [2]. - The company plans to distribute a cash dividend of 3.0 yuan per 10 shares, corresponding to a payout ratio of 41.9% [2]. Profitability and Cost Management - The overall gross margin for the first half of 2024 was 32.4%, with a net profit margin of 18.4%, both showing improvements compared to the previous year [2]. - The company’s expense ratio increased slightly to 8.6%, with management expenses rising due to the provision for incentive funds [2]. - In Q2 2024, the gross margin was 34.1%, and the net profit margin was 19.3%, indicating continued strong profitability [2]. Capacity Expansion and Market Demand - The company is expanding its production capacity in response to high market demand, with several new furnaces launched in early 2024 to support the growth of borosilicate molded bottles and other product lines [2]. - The ongoing capacity release is expected to support long-term growth for the company [2]. Earnings Forecast and Valuation - The report forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 1.029 billion yuan, 1.174 billion yuan, and 1.355 billion yuan, respectively [3]. - The report maintains a positive outlook on the company’s growth driven by consistent product demand and cost reductions [2].