BAOWU MAGNESIUM(002182) 首创证券·2024-08-01 01:03Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's revenue for the first half of 2024 reached 4.075 billion yuan, a year-on-year increase of 15.37%, while the net profit attributable to shareholders was 120 million yuan, a decrease of 1.28% compared to the same period last year [1] - The decline in magnesium prices has impacted the company's magnesium alloy business, but the magnesium deep processing business has shown steady growth, with revenue of 533 million yuan in the first half, up 21.29% year-on-year [1] - The company is expanding its downstream applications and has entered the production ramp-up phase for its Anhui Baomei project, with the Chao Lake Yunhai expansion project set to commence production in the second half of the year [1] - The company has signed strategic cooperation agreements to promote magnesium-based solid-state hydrogen storage technology, which is expected to drive future growth [1] Financial Performance Summary - The company's projected revenues for 2024-2026 are 95.61 billion yuan, 139.22 billion yuan, and 218.29 billion yuan, respectively, with net profits of 3.37 billion yuan, 8.22 billion yuan, and 11.42 billion yuan [2] - The earnings per share (EPS) are expected to be 0.48 yuan, 1.16 yuan, and 1.61 yuan for the years 2024, 2025, and 2026, respectively [2] - The company is expected to experience a revenue growth rate of 24.95% in 2024, followed by 45.61% in 2025 and 56.79% in 2026 [2] Financial Ratios and Projections - The company's current price-to-earnings (PE) ratio is 21.92, which is projected to decrease to 21.18 in 2024 and further to 8.67 in 2025 [2] - The return on equity (ROE) is projected to improve from 5.89% in 2023 to 14.82% in 2026 [3] - The gross margin is expected to fluctuate, with projections of 13.44% in 2023 and 14.68% in 2026 [3]