Shengtak New Material (SZ:300881) Orient Securities·2024-07-30 08:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 28.53 yuan [24][42]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 105 million to 115 million yuan in 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 19.6%, an increase of 4.2 percentage points quarter-on-quarter, 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, with significant increases in both alloy steel and stainless steel product shipments [1]. Financial Summary - The company reported revenues of 1,207 million yuan in 2022, projected to grow to 2,939 million yuan in 2024, reflecting a year-on-year growth of 48.3% [25]. - The net profit attributable to shareholders is expected to reach 223 million yuan in 2024, with a year-on-year growth of 84.8% [25]. - The gross margin is projected to improve to 17.2% in 2024, while the net margin is expected to be 7.6% [25]. - The return on equity (ROE) is forecasted to be 22.2% in 2024, indicating strong profitability [25].