Shengtak New Material (SZ:300881) Orient Securities·2024-07-30 07:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 28.53 yuan, indicating a potential upside from the current price of 23.48 yuan [47]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of between 105 million and 115 million yuan for the first half of 2024, representing a year-on-year increase of 104.22% to 123.66% [1]. - The gross profit margin for Q1 2024 was reported at 19.6%, a quarter-on-quarter increase of 4.2 percentage points, while the net profit margin was 8.4%, up 0.8 percentage points [1]. - The demand for boiler pipes is expected to remain stable due to over 100 million kilowatts of newly approved coal power projects in 2023, supporting the upstream raw material market [1]. - The company's IPO fundraising projects have led to a doubling of stainless steel sales year-on-year, with alloy steel product shipments increasing by 21.68% and stainless steel shipments by 81.06% in H1 2024 [1]. Financial Projections - The company’s revenue is projected to grow from 1,981 million yuan in 2023 to 2,939 million yuan in 2024, reflecting a year-on-year growth rate of 48.3% [32]. - The net profit attributable to the parent company is expected to rise from 121 million yuan in 2023 to 223 million yuan in 2024, indicating an 84.8% increase [32]. - Earnings per share are forecasted to increase from 1.10 yuan in 2023 to 2.02 yuan in 2024 [32].