Jia Yuan Technology(688388) 光大证券·2024-08-21 14:37Investment Rating - The report maintains an "Accumulate" rating for the company [4]. Core Views - The company reported a revenue of 2.423 billion yuan for H1 2024, a year-on-year increase of 16.62%, but a net loss attributable to shareholders of 105 million yuan, marking a shift from profit to loss [1]. - In Q2 2024, the company achieved a revenue of 1.493 billion yuan, a year-on-year increase of 36.50% and a quarter-on-quarter increase of 60.55, driven by recovering downstream orders and rising copper prices [1]. - The company is expected to benefit from a recovery in demand in the second half of the year, with production capacity utilization anticipated to improve further [1]. - The company is actively exploring diversification into solar energy, energy storage, charging piles, wind power, and carbon trading, with other business revenues reaching 379 million yuan in H1 2024 [1]. Summary by Sections Financial Performance - H1 2024 revenue was 2.423 billion yuan, with a year-on-year growth of 16.62%. The net profit attributable to shareholders was -105 million yuan, indicating a loss compared to the previous year [1]. - Q2 2024 revenue was 1.493 billion yuan, showing a year-on-year increase of 36.50% and a quarter-on-quarter increase of 60.55% [1]. - The company sold 25,000 tons of copper foil in H1 2024, a year-on-year increase of 0.68%, with Q2 shipments estimated at 1.6 million tons, reflecting a significant recovery in demand [1]. Cost and Margin Analysis - The gross margin for Q2 2024 was 2.71%, a quarter-on-quarter increase of 2.61 percentage points but a year-on-year decrease of 0.20 percentage points. The net margin was -3.95%, with a quarter-on-quarter increase of 1.23 percentage points and a year-on-year decrease of 2.54 percentage points [1]. - The company faced pressure on profitability due to extended customer settlement periods and rising copper prices, leading to credit impairment losses of 28 million yuan in Q2 2024 [1]. Capacity and R&D - By the end of 2023, the company had established a copper foil production capacity of 100,000 tons, with a target to exceed 125,000 tons in 2024 [1]. - R&D investment in H1 2024 was 135 million yuan, a year-on-year increase of 12.15%, focusing on high-performance copper foil products for applications in 5G communications and automotive intelligence [1]. Diversification Strategy - The company is pursuing a multi-faceted development strategy, with other business revenues reaching 379 million yuan in H1 2024, including ventures into solar energy, energy storage, and carbon trading [1].