Huafon Aluminium(SH:601702) Minsheng Securities·2024-08-01 04:30Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company achieved a revenue of 4.934 billion yuan in H1 2024, representing an 18.37% year-on-year growth, and a net profit attributable to shareholders of 558 million yuan, up 35.19% year-on-year [2]. - The growth in profit is attributed to an expanding customer base, increased sales volume, a shift towards high-value-added products, and effective cost control through lean production management [2]. - The pricing model based on "aluminum ingot price + processing fee" has been effective, with the average domestic spot aluminum price in H1 2024 at 19,796 yuan/ton, a 5.89% increase from the previous year [2]. - The company has established high barriers in the composite materials industry, with advantages in processing fees and yield rates, and has deep ties with leading customers in the automotive and new energy sectors [2]. Financial Summary - For H1 2024, the company reported a gross profit margin of 16.66%, an increase of 0.75 percentage points compared to the previous year [2]. - The company’s production capacity is robust, with two major production bases in Chongqing and Shanghai, totaling an annual capacity of 350,000 tons, and plans for further expansion [2]. - Forecasted net profits for 2024-2026 are 1.123 billion, 1.381 billion, and 1.600 billion yuan, respectively, with corresponding PE ratios of 14, 12, and 10 times based on the closing price on July 30 [2][3].