Huafon Aluminium(SH:601702) Soochow Securities·2024-07-31 05:30Investment Rating - The report maintains a "Buy" rating for Huafeng Aluminum [9][10]. Core Views - In the first half of 2024, the company achieved a revenue of 4.934 billion yuan, a year-on-year increase of 18%, and a net profit attributable to shareholders of 558 million yuan, up 35% year-on-year, indicating strong performance [10]. - The company benefits from robust downstream demand in the new energy sector, leading to continuous growth in customer base and sales volume [1]. - The pricing strategy, based on aluminum ingot prices plus processing fees, has resulted in an increase in product prices due to rising raw material costs [1]. - The optimization of product structure and scale advantages has led to an increase in profit per ton, with a projected gross profit margin of over 4,000 yuan per ton [1]. - The company is deepening relationships with high-quality clients and actively exploring overseas markets, which provides further capacity release opportunities [1]. Summary by Sections Financial Performance - In H1 2024, the company reported a gross margin of 17%, an increase of 0.2 percentage points year-on-year, and a net profit margin of 11.3%, up 1.4 percentage points year-on-year [1]. - The company’s sales expense ratio, management expense ratio, and R&D expense ratio were 0.8%, 1.4%, and 2.3%, respectively, indicating effective cost control [1]. Revenue and Profit Forecast - The projected total revenue for 2024 is 12.268 billion yuan, with a year-on-year growth of 32.04% [9]. - The net profit attributable to shareholders is expected to reach 1.208 billion yuan in 2024, reflecting a growth rate of 34.36% [9]. Market Position and Strategy - The company has established a complete product system for new energy vehicle materials, including various high-value-added products [1]. - Key clients include leading global automotive parts manufacturers, enhancing the company's market position [1].