Investment Rating - The report assigns an OUTPERFORM rating to Shanghai Hajime Advanced Material Technology with a target price of RMB 18.48 [1] Core Views - The company achieved strong growth in the first half of 2024, with revenue reaching RMB 340 million, up 18.32% YoY, and net profit attributable to shareholders at RMB 78 million, up 55.20% YoY [1] - Gross profit margin improved to 35.38%, up 4.08 percentage points, and net profit margin reached 22.77%, up 5.41 percentage points, driven by efficient project management and cost control [1] - In Q2 2024, revenue was RMB 182 million, up 16.73% YoY and 15.35% QoQ, with net profit at RMB 42 million, up 41.72% YoY and 18.49% QoQ [1] - The company announced an equity incentive plan, granting 1.496 million restricted shares, representing 0.62% of total share capital, to 57 employees at a grant price of RMB 6.88 per share [2] - Profit forecasts for 2024-2026 are RMB 161 million, RMB 203 million, and RMB 250 million, with EPS of RMB 0.66, RMB 0.84, and RMB 1.03, respectively [2] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 804 million, up 35.9% YoY, with net profit at RMB 161 million, up 55.4% YoY [3] - Gross margin is expected to remain stable at 34.1% from 2024E to 2026E [3] - ROE is forecasted to increase from 9.0% in 2023 to 15.3% in 2026E [3] - Revenue from automotive parts is expected to grow 45.0% YoY in 2024E, reaching RMB 604 million, with a gross margin of 34.99% [4] - Revenue from precision molds is projected to grow 40.0% YoY in 2024E, reaching RMB 68 million, with a gross margin of 41.27% [4] Business Overview - The company specializes in the development and application of special engineering plastics, focusing on high-precision plastic parts and molds for industries such as automotive, home appliances, and medical devices [6] - It has obtained 78 patents, including 4 invention patents, 72 utility model patents, and 2 design patents [6] - The company has passed certifications such as IATF16949:2016, ISO14001:2015, and OHSAS18001:2007 [6] Valuation and Peer Comparison - The company is valued at 28x PE for 2024E, with a target price of RMB 18.48 [2] - Comparable companies in the industry have an average PE of 27x for 2024E, with an average EPS of RMB 1.09 [5]
肇民科技：公司跟踪报告：首次覆盖：上半年业绩高速增长，盈利能力显著提升