APALT(SZ:002540) Minsheng Securities·2024-08-20 04:09Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [1][3]. Core Views - The company reported a revenue of 3.577 billion yuan for the first half of 2024, representing an 18.45% year-on-year increase, and a net profit attributable to shareholders of 246 million yuan, up 7.38% year-on-year [1]. - The aluminum product sales continue to show steady growth, with a total sales volume of 125,300 tons in H1 2024, an increase of 11.75% year-on-year [1]. - The company is expected to benefit from capacity expansion in its traditional aluminum business and continued high growth in its automotive parts segment, which will further enhance profitability [1]. Financial Performance - In Q2 2024, the company achieved a revenue of 1.879 billion yuan, a year-on-year increase of 22.8% and a quarter-on-quarter increase of 10.6% [1]. - The gross profit for H1 2024 was 461 million yuan, with a calculated gross profit per ton of 3,679 yuan, down 214 yuan per ton compared to H1 2023 [1]. - Financial expenses increased significantly due to higher convertible bond interest expenses and reduced interest income from deposits [1]. Product Structure - Revenue from thermal management system aluminum materials reached 1.486 billion yuan, a year-on-year increase of 21.42%, with a gross margin of 13.23% [1]. - Revenue from chassis safety system aluminum materials was 1.087 billion yuan, up 10.56% year-on-year, with a gross margin of 11.11% [1]. - Revenue from aerospace and other aluminum materials surged by 107.25% year-on-year to 219 million yuan, although the gross margin decreased by 9.07 percentage points [1]. Capacity Expansion - The company is making steady progress in capacity construction, with the high-performance precision aluminum profile manufacturing project reaching 100.7% completion [1]. - The subsidiary is investing in projects to produce 12 million lightweight high-performance aluminum components for automotive applications, with the main construction completed by the reporting date [1]. Profit Forecast - The company is projected to achieve net profits of 617 million yuan, 710 million yuan, and 821 million yuan for the years 2024, 2025, and 2026, respectively [2][4]. - The corresponding price-to-earnings ratios based on the stock price as of August 19, 2024, are expected to be 10x, 9x, and 8x for the respective years [1][2].