Tianan New Material(SH:603725)2024-07-10 09:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [13]. Core Insights - The company is expected to achieve a net profit of 0.50-0.58 billion yuan in the first half of 2024, representing a year-on-year growth of 35%-55%. The second quarter of 2024 is projected to yield a net profit of 0.38-0.45 billion yuan, with a growth rate of 31%-56% [13]. - The company has demonstrated resilience in a challenging market environment, with multiple business segments contributing to profit growth. Key strategies include enhancing collaboration across business units, focusing on customer needs, and expanding market coverage [13]. - The traditional automotive interior business remains a stable growth foundation, with a revenue increase of 15.5% year-on-year in 2023, driven by partnerships with new energy vehicle manufacturers [13]. - The acquisition of Eagle Brand has revitalized the company, leading to a significant turnaround in profitability and revenue growth, with a 20.8% increase in revenue in 2023 [13]. - The company is advancing into the assembly interior market, leveraging its automotive interior technology to offer comprehensive solutions, tapping into a market with substantial growth potential [13]. Financial Summary - The total revenue for 2024 is projected to be 3.544 billion yuan, with a year-on-year growth rate of 12.8%. The net profit for 2024 is estimated at 0.152 billion yuan, reflecting a growth of 25.8% [4]. - The company’s earnings per share (EPS) for 2024 is expected to be 0.50 yuan, with a projected increase to 0.93 yuan by 2026 [4]. - The company’s return on equity (ROE) is forecasted to improve from 1.7% in 2024 to 23.2% by 2026, indicating enhanced profitability [4].