华旺科技：2024年中报点评：业绩表现符合预期，高分红凸显长期价值

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 17.9 CNY per share, compared to the current price of 11.94 CNY [1]. Core Insights - The company's performance in the first half of 2024 met expectations, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 1.95 billion, 300 million, and 270 million CNY respectively, showing year-on-year growth of 4.6%, 28.1%, and 24.5% [1]. - The company focuses on the mid-to-high-end decorative paper market, with stable performance in its decorative paper and wood pulp trading businesses, achieving revenues of 1.54 billion and 380 million CNY respectively in the first half of 2024 [1]. - The company has established long-term partnerships with many well-known foreign printing factories, leading to a steady increase in overseas market share, with domestic and foreign revenues of 1.53 billion and 420 million CNY respectively in the first half of 2024 [1]. - The company’s gross profit margin for the first half of 2024 was 18.6%, an increase of 2.2 percentage points year-on-year, while the net profit margin attributable to shareholders increased by 2.8 percentage points to 15.5% [1]. - The impact of the European anti-dumping investigation is expected to be limited, as the company's sales in the EU region accounted for less than 5% of total sales [1]. - The company has a high dividend payout, distributing 4.2 CNY per 10 shares, corresponding to a mid-term dividend rate of 64.5% [1]. - The company is actively expanding into overseas markets and diversifying its product offerings, including high-quality food paper and medical-grade paper, which are expected to drive long-term growth [1]. Financial Summary - For 2024, the company is projected to achieve revenues of 4.495 billion CNY, with a year-on-year growth rate of 13.0%, and a net profit of 628 million CNY, reflecting an 11.0% increase [2]. - The earnings per share (EPS) is expected to be 1.35 CNY in 2024, with a price-to-earnings (P/E) ratio of 9 [2]. - The company’s total assets are projected to reach 7.08 billion CNY by 2024, with a debt-to-equity ratio of 11.2% [6].