华旺科技：产能释放提升份额，中期分红强化价值

Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating a potential return of over 20% within the next six months [5][14]. Core Insights - The company reported a revenue of 990 million in Q2 2024, a year-on-year increase of 5%, and a net profit attributable to the parent company of 160 million, up 21% year-on-year [1]. - For the first half of 2024, the company achieved a revenue of 1.95 billion, a 4.6% increase year-on-year, and a net profit of 300 million, reflecting a 28% year-on-year growth [1]. - The company plans to distribute a dividend of 190 million for the mid-year, with a payout ratio of 64.5%, suggesting a projected dividend yield of 7% for 2024 [1]. - The company is focused on high-end decorative paper production, leveraging its customer resource advantages and product quality to maintain market leadership [2]. - The company is expanding its production capacity, particularly with the second phase of its 18wt specialty paper production line, which is expected to enhance both domestic and international sales [2]. Financial Performance Summary - In Q2 2024, the company's gross margin was 17.2%, a decrease of 1.6 percentage points year-on-year, while the net profit margin increased to 15.6%, up 2 percentage points year-on-year [3]. - The report forecasts a decrease in profit estimates for 2024-2026, with net profits projected at 630 million, 700 million, and 800 million respectively, down from previous estimates [4]. - The company’s revenue is expected to grow from 4.44 billion in 2024 to 5.53 billion in 2026, with corresponding net profit growth rates of 10.73% and 14.10% [4][10]. Market Position and Strategy - The company continues to enhance its market share in the high-end decorative paper segment, demonstrating strong consumer influence and market leadership [2]. - The company is actively responding to the EU's anti-dumping investigations, with limited short-term impact on shipments but significant medium-term export potential [2]. - The report highlights the company's effective cost control and product development capabilities, which are expected to improve profitability in the medium term despite current cost pressures [3].