CZDH(600230) 国海证券·2024-09-06 08:01Investment Rating - The report assigns a "Buy" rating for the company, Cangzhou Dahua [2][35]. Core Views - The company experienced a revenue increase of 11.03% year-on-year in H1 2024, reaching 2.553 billion yuan, but faced a significant decline in net profit, down 75.97% to 29 million yuan [2][3]. - The performance in H1 2024 was impacted by weak terminal demand, particularly in the TDI segment, which saw a revenue drop of 14.91% [3][5]. - The company is expected to achieve revenue growth in the coming years, with projected revenues of 5.108 billion, 5.303 billion, and 5.613 billion yuan for 2024, 2025, and 2026 respectively [35]. Summary by Sections Financial Performance - In H1 2024, the company reported a net profit of 29 million yuan, a decrease of 75.97% year-on-year, with a significant drop in operating cash flow, down 35.49% to 196 million yuan [2][10]. - The sales gross margin was 8.28%, down 7.72 percentage points year-on-year, while the net profit margin was 1.41%, down 3.92 percentage points [2][10]. Product Segments - The revenue from PC products increased by 24.06% year-on-year to 697 million yuan in H1 2024, benefiting from improved sales volumes [5][6]. - The company’s TDI segment generated 1.122 billion yuan in revenue, a decline of 14.91% due to weak terminal consumption and market price drops [3][5]. Market Position and Outlook - Cangzhou Dahua is positioned as a leader in TDI production in China, with a production capacity of 160,000 tons and a focus on technological advancements [6][35]. - The company is expected to leverage its scale advantages and mature technology in TDI and PC production to achieve rapid growth in the coming years [35].