东材科技：经营改善，趋势向上

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company has shown operational improvement with a revenue of 21.2 billion yuan for the first half of 2024, reflecting a year-on-year increase of 16.0%. The net profit attributable to shareholders was 1.6 billion yuan, down 27.4% year-on-year, while the net profit excluding non-recurring items was 1.1 billion yuan, down 9.1% year-on-year [5][6]. - The company has a wide range of product applications, focusing on new insulation materials, optical films, electronic materials, and environmentally friendly flame-retardant materials, which are used in various sectors including power generation, smart grids, new energy vehicles, and consumer electronics [5][6]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 12.0 billion yuan, up 23.8% year-on-year and 30.5% quarter-on-quarter. The net profit attributable to shareholders was 1.1 billion yuan, down 27.1% year-on-year but up 115.1% quarter-on-quarter. The net profit excluding non-recurring items was 0.7 billion yuan, up 16.9% year-on-year and 94.5% quarter-on-quarter [5][6]. - The gross margin for Q2 2024 was 16.1%, an increase of 3.4 percentage points quarter-on-quarter, while the net margin was 8.8%, an increase of 4.0 percentage points quarter-on-quarter [6]. Business Segments - The company’s subsidiary, Dongfang Insulation, generated 8.0 billion yuan in revenue, a 17.5% increase, but net profit dropped 62.0%. Dongcai New Materials achieved 5.6 billion yuan in revenue, up 3.9%, with net profit increasing by 82.1%. Jiangsu Dongcai reported 12.7 billion yuan in revenue, up 46.8%, but net profit decreased by 42.0% [6]. - The company is actively expanding into high-end optical films and electronic materials, with new projects in advanced photoresist materials and composite copper foil [7]. Future Outlook - The company is expected to maintain high growth with projected net profits of 4.2 billion yuan, 5.6 billion yuan, and 8.0 billion yuan for 2024, 2025, and 2026 respectively [7].