SOKAN(SH:688157) EBSCN·2024-08-16 07:03Investment Rating - The report maintains a "Buy" rating for Matsui Co., Ltd. (688157.SH) [5] Core Views - The high-end consumer electronics market is recovering, driving demand for new functional coating materials. The company achieved significant revenue growth in this sector, with a 35.7% year-on-year increase in H1 2024 [2] - The company has successfully implemented innovative projects, including a groundbreaking UV inkjet printing solution for battery insulation, marking a significant milestone in its technological advancements [2] - The financial outlook is positive, with revised profit forecasts for 2024-2026, reflecting the anticipated recovery in consumer electronics demand [2] Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 323 million yuan, a 31.5% increase year-on-year, and a net profit of 40.71 million yuan, up 52.4% year-on-year. The Q2 2024 revenue was 188 million yuan, showing a 24.0% year-on-year increase and a 39.1% quarter-on-quarter increase [1][2] - The gross margin improved to 50.1%, up 1.1 percentage points year-on-year, while the expense ratios for sales, management, and R&D decreased [2] Market Demand and Innovations - The demand for new functional coating materials is driven by the upgrade of high-end consumer electronics, with notable growth in mobile phones (32.9%), laptops (6.6%), and wearable devices (77.3%) [2] - The company has deepened collaborations with major clients in the consumer electronics sector and has successfully introduced innovative solutions to key customers [2] Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been adjusted upwards, with expected net profits of 119 million yuan (up 6.5%), 154 million yuan (up 11.1%), and 201 million yuan respectively [2]