Novoray(SH:688300) Haitong Securities·2024-08-07 11:01Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company has achieved rapid growth in net profit in H1 2024, with a projected net profit of 110-125 million yuan, representing a year-on-year increase of 51% to 71%. The non-recurring net profit is expected to be 100-110 million yuan, up 61% to 77% year-on-year [3][4] - The company is focusing on high-end spherical products for applications in advanced packaging for AI, 5G, and HPC, as well as new energy vehicles and high-frequency circuit boards [4] - The company plans to invest approximately 130 million yuan in a production line for ultra-fine spherical powder for advanced integrated circuits, with a designed capacity of 3,000 tons per year [4] Financial Summary - The company's revenue is projected to grow from 712 million yuan in 2023 to 1.3 billion yuan in 2026, with a compound annual growth rate (CAGR) of 18.7% [5][9] - The net profit is expected to increase from 174 million yuan in 2023 to 363 million yuan in 2026, with a CAGR of 18.4% [5][9] - The earnings per share (EPS) are forecasted to rise from 0.94 yuan in 2023 to 1.95 yuan in 2026 [5][9] Business Segmentation - The company is expected to generate sales revenue from various segments, including angular silicon powder and spherical silicon powder, with projected revenues of 233.22 million yuan and 368.93 million yuan respectively in 2024 [6] - The gross margin for spherical silicon powder is anticipated to improve from 46.22% in 2023 to 49% in 2026 [6] Valuation - The company is considered a leader in the semiconductor packaging materials segment, benefiting from domestic substitution and increasing demand for high-end applications. The reasonable valuation is estimated at a PE ratio of 35-40 times for 2024, corresponding to a fair value range of 46.20-52.80 yuan [4][7]