Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][15]. Core Insights - The company reported a revenue of 2.211 billion yuan for the first half of 2024, a year-on-year increase of 42.0%. However, the net profit attributable to shareholders was -52 million yuan, a significant decline of 254.6% year-on-year. The second quarter saw a revenue of 1.249 billion yuan, up 53.9% year-on-year, with a net profit of -2 million yuan, narrowing by 79.7% year-on-year [1][2]. - The copper foil industry has seen a recovery in processing fees since June 2024, with average processing fees for 6μm lithium battery copper foil at 17,300 yuan/ton in June, up from a low of 16,100 yuan/ton in Q1/Q2 2024 [2]. - The company maintained a high production capacity utilization rate of 104.45% in the first half of 2024, with a nominal total production capacity of 55,500 tons/year. The gross profit margin for Q2 was 4.0%, showing a year-on-year decline of 0.7 percentage points but a quarter-on-quarter increase of 3.6 percentage points [2][3]. - The company has a low debt ratio of 36.19% and sufficient liquidity, with cash and cash equivalents of 653 million yuan and trading financial assets of 1.136 billion yuan as of the end of H1 2024. R&D expenses increased by 50% year-on-year to 83 million yuan [2][3]. - Despite intensified industry competition and pressure on profitability, the company has managed to maintain growth in copper foil shipments. The report anticipates a gradual recovery in profitability, projecting net profits of 40 million yuan, 156 million yuan, and 252 million yuan for 2024, 2025, and 2026, respectively [2][3]. Financial Summary - Total revenue is projected to grow from 3.415 billion yuan in 2023 to 4.545 billion yuan in 2024, reflecting a growth rate of 33.1%. Net profit is expected to decline from 53 million yuan in 2023 to 40 million yuan in 2024, with a significant recovery anticipated in subsequent years [3][6]. - The company’s earnings per share (EPS) is forecasted to decrease from 0.29 yuan in 2023 to 0.22 yuan in 2024, with a recovery to 0.86 yuan and 1.39 yuan in 2025 and 2026, respectively [3][6].
中一科技：2024年半年度报告点评：铜箔产销保持增长，利润率开始改善