Longhua Technology(300263) 光大证券·2024-09-01 06:12Investment Rating - The report maintains a "Buy" rating for Longhua Technology [2][3] Core Views - The company reported a revenue of 1.222 billion yuan for the first half of 2024, a year-on-year increase of 3.03%, while the net profit attributable to shareholders decreased by 11.50% to 105 million yuan [1] - The traditional heat exchange equipment business saw a revenue decline, but the new materials segment showed significant growth, particularly in electronic new materials and polymer composite materials [1] - The company has successfully launched a new 500-ton ITO target production line, enhancing its competitive strength in the market [1] - Longhua Technology is positioned as a quality supplier in the military market for PMI materials, with potential expansion into the low-altitude economy sector [1] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 580 million yuan, a year-on-year decline of 1.49%, but net profit increased by 27.32% to 51 million yuan [1] - The traditional energy-saving heat exchange equipment revenue was 486 million yuan, down 14.75% year-on-year [1] - The electronic new materials business, particularly Fenglian Technology, reported a revenue of 299 million yuan, up 49.34%, with a net profit of 41 million yuan, a significant increase of 191.42% [1] Business Segments - The new materials segment includes two main areas: electronic new materials and high polymer composite materials, both showing strong growth [1] - The ITO target project, which has broken foreign monopolies, is expected to significantly enhance the company's competitive position [1] - The PMI materials produced by Zhaoheng Technology are essential for various aircraft, and the company is exploring opportunities in the low-altitude economy [1] Profit Forecast and Valuation - The profit forecast for 2024-2026 is set at 275 million, 343 million, and 416 million yuan respectively, with corresponding EPS of 0.30, 0.38, and 0.46 yuan [2] - The company is projected to maintain a strong growth trajectory across multiple business areas, justifying the "Buy" rating [2]