Yongjin Technology (SH:603995) Minsheng Securities·2024-08-10 14:59Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The company achieved significant growth in sales and profits in H1 2024, with revenue reaching 20.297 billion yuan, a year-on-year increase of 17.1%, and net profit attributable to shareholders of 428 million yuan, up 100.4% year-on-year [1]. - The company is expanding its production capacity and diversifying into new materials, which is expected to enhance profitability and support future growth [1][2]. Summary by Sections Financial Performance - In H1 2024, the company sold 1.6045 million tons of cold-rolled products, a 37.24% increase year-on-year. The sales volume of 300/400 series cold-rolled stainless steel coils was 1.2838 million tons and 237,100 tons, respectively, representing year-on-year growth of 26.30% and 57.65% [1]. - The average selling price for 300 series products was 13,706 yuan/ton, down 10.9% year-on-year, while for 400 series products, it was 7,301 yuan/ton, down 3.9% year-on-year. The gross margin for H1 2024 was 5.81%, an increase of 1.06 percentage points year-on-year [1]. Future Outlook - The company is constructing multiple projects, including a 350,000-ton precision stainless steel strip project in Guangdong and a 195,000-ton ultra-thin precision stainless steel strip project in Zhejiang, which are expected to boost production capacity [1]. - The company completed a private placement in April 2023, raising approximately 1.2 billion yuan to fund expansion projects [1]. - The company is also pursuing a diversification strategy by developing titanium alloy and battery casing materials, with project progress at 61.52% and 18.98%, respectively [1]. Profit Forecast - The company is projected to achieve net profits of 743 million yuan, 819 million yuan, and 906 million yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 8, 8, and 7 times [2][4].