Valiant(SZ:002643) Guotai Junan Securities·2024-08-22 08:42Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company's performance in Q2 2024 met expectations, supported by a strong R&D team and continuous investment in innovation, indicating long-term growth potential [2][3]. - Despite a slowdown in downstream demand for life sciences and pharmaceutical businesses, the company is expected to grow through multiple avenues, including ongoing projects and expansion into new material sectors [3]. Financial Summary - For H1 2024, the company reported revenue of 1.956 billion yuan, a year-on-year decrease of 5.66%, and a net profit attributable to shareholders of 215 million yuan, down 44.71% year-on-year [3]. - Q2 2024 revenue was 1.018 billion yuan, a year-on-year decrease of 2.15% but an increase of 8.59% quarter-on-quarter. The net profit for Q2 was 117 million yuan, down 45.04% year-on-year but up 18.95% quarter-on-quarter [3]. - The gross margin and net margin for Q2 2024 were 39.04% and 15.15%, respectively, showing a decline compared to the previous year [3]. - R&D expenses in Q2 2024 were 114 million yuan, an increase of 20.53% year-on-year, reflecting the company's commitment to enhancing research capabilities [3]. Earnings Forecast - The EPS estimates for 2024-2026 have been revised down to 0.67, 0.77, and 0.92 yuan, respectively, from previous estimates of 0.91, 1.13, and 1.35 yuan [3]. - The target price has been adjusted to 14.59 yuan, down from 20.14 yuan, based on a 2024 PE ratio of 22x [3]. Market Data - The current stock price is 8.43 yuan, with a market capitalization of 7.841 billion yuan [5][10]. - The stock has experienced a 52-week price range of 8.43 to 18.04 yuan [5]. Financial Ratios - The company’s return on equity (ROE) is projected to be 8.4% in 2024, with a net profit margin of 16.8% [4][9].