Xianhe(SH:603733) Orient Securities·2024-08-15 07:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.20 CNY [3][5] Core Insights - The company reported a revenue of 4.604 billion CNY for the first half of 2024, representing a year-on-year growth of 22.23%, and a net profit attributable to the parent company of 550 million CNY, up 204.73% year-on-year [1] - In Q2 2024, the company achieved a revenue of 2.395 billion CNY, with year-on-year and quarter-on-quarter growth of 24.14% and 8.40% respectively, and a net profit of 282 million CNY, reflecting a year-on-year increase of 381.29% [1] - The company demonstrated strong profitability resilience despite rising raw material costs, with a gross margin of 17.39% in Q2 2024, slightly down by 0.6 percentage points from the previous quarter [1] - The integration of pulp and paper production is becoming clearer, with new production capacities being established in Hubei and Guangxi, which are expected to enhance profitability in the future [1][5] Financial Summary - The company’s revenue is projected to grow from 10.872 billion CNY in 2024 to 14.668 billion CNY in 2026, with corresponding net profits expected to rise from 1.034 billion CNY to 1.555 billion CNY [2] - The earnings per share (EPS) are forecasted to increase from 1.46 CNY in 2024 to 2.20 CNY in 2026 [2] - The company’s net profit margin is expected to stabilize around 9.5% in 2024, with a gradual increase to 10.6% by 2026 [2]