EMT(SH:601208) KAIYUAN SECURITIES·2024-08-22 07:30Investment Rating - The investment rating for Dongcai Technology (601208.SH) is "Buy" (maintained) [1]. Core Views - The company's Q2 performance showed improvement in profitability due to increased production and sales, with a revenue of 1.22 billion yuan, up 23.8% year-on-year and 30.5% quarter-on-quarter. The net profit for Q2 was 109 million yuan, a decrease of 27.1% year-on-year but an increase of 115.1% quarter-on-quarter [2][3]. - The company plans to invest in a new project for producing 20,000 tons of electronic materials for high-speed communication substrates, with a total investment of 700 million yuan [3]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 2.12 billion yuan, a year-on-year increase of 16%. The net profit attributable to shareholders was 160 million yuan, down 27.5% year-on-year, while the net profit excluding non-recurring items was 109 million yuan, up 194.6% year-on-year [2][3]. - The projected net profits for 2024-2026 are 453 million yuan, 633 million yuan, and 783 million yuan respectively, with corresponding EPS of 0.51 yuan, 0.71 yuan, and 0.87 yuan [2][4]. Product Performance Summary - In Q2 2024, the sales revenue for various product lines showed significant growth: electrical insulation materials (132 million yuan, +10.6% YoY), new energy materials (383 million yuan, +22.3% YoY), optical film materials (300 million yuan, +14.6% YoY), electronic materials (308 million yuan, +40.4% YoY), and environmentally friendly flame retardant materials (44 million yuan, +40.4% YoY) [3][5]. - The sales volume for Q2 2024 also increased significantly across product lines, with electrical insulation materials up 31.6% YoY, new energy materials up 37.9% YoY, and electronic materials up 42.6% YoY [5]. Future Outlook - The company maintains its profit forecast, expecting steady growth driven by the release of new production capacities for optical films and electronic resins, indicating a positive long-term growth outlook [2][3].