Tianan New Material(SH:603725)2024-08-19 03:09Investment Rating - The report maintains a "Buy" rating for Tianan New Materials (天安新材) [4] Core Views - The company reported a revenue of 1.388 billion yuan for H1 2024, a year-on-year increase of 1.7%, and a net profit attributable to shareholders of 53 million yuan, up 43.5% year-on-year [1] - The company continues to develop its pan-home furnishing business, acquiring Foshan Southern Architectural Design Institute to enhance its capabilities in public construction and interior design, thereby promoting a closed-loop assembly-type integrated industry chain [1][2] - The automotive interior business benefited from the increasing penetration of new energy vehicles, with H1 2024 revenue growing by 12% year-on-year [2] - The company has optimized its expense ratios, leading to improved profitability, with a net profit margin of 3.8% for H1 2024, up 1.1 percentage points year-on-year [2] Financial Summary - For H1 2024, the company achieved a gross margin of 22.0%, with a projected increase to 22.9% in 2024E [3] - The company expects net profits of 152 million yuan, 213 million yuan, and 285 million yuan for 2024E, 2025E, and 2026E respectively, representing year-on-year growth rates of 25.8%, 39.9%, and 33.7% [2][3] - The company’s PE ratios are projected to be 12X, 9X, and 6X for 2024E, 2025E, and 2026E respectively [2]