鼎龙股份：新材料业务收入过半，业绩表现延续高增

Investment Rating - The report maintains a "Buy" rating for Dinglong Co., Ltd. (300054.SZ) [4] Core Views - Dinglong Co., Ltd. achieved a revenue of 1.519 billion yuan in H1 2024, representing a year-on-year increase of 31.01%, and a net profit attributable to shareholders of 218 million yuan, up 127.22% year-on-year [1] - The new materials business contributed over half of the revenue, with semiconductor materials revenue reaching 634 million yuan, a year-on-year increase of 106.56%, and its share of total revenue rising from 32% in 2023 to 42% in H1 2024 [1] - The company plans to issue convertible bonds to raise 920 million yuan, with 480 million yuan allocated for the construction of 300 tons of KrF/ArF photoresist capacity, aiming to tackle the challenges of domestic production in high-end materials [1][2] Summary by Sections Financial Performance - In Q2 2024, Dinglong Co., Ltd. reported revenue of 811 million yuan, a quarter-on-quarter increase of 14.52% and a year-on-year increase of 32.35%, with a net profit of 136 million yuan, up 67.04% quarter-on-quarter and 122.88% year-on-year [1] - The company’s revenue from display materials reached 167 million yuan in H1 2024, a year-on-year increase of 232.27% [1] Business Development - The company has established a leading position in the domestic supply of YPI and PSPI products, with production capacities of 1,000 tons and 1,200 tons respectively [2] - The stock incentive plan aims for net profit targets of 500 million, 700 million, and 1 billion yuan for 2024, 2025, and 2026 respectively, indicating a projected compound annual growth rate (CAGR) of 65% from 2023 to 2026 [2] Market Outlook - The global PSPI market is expected to reach 12 billion yuan by 2029, with a compound annual growth rate of 27.5% from 2022 to 2029, positioning Dinglong Co., Ltd. favorably in the new display materials sector [2] - The report forecasts net profits of 516 million, 721 million, and 972 million yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 36, 25, and 19 [2]