Hubei Feilihua Quartz Glass (SZ:300395) Soochow Securities·2024-08-23 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has reported a decline in revenue and net profit for the first half of 2024, with revenue at 915 million yuan, down 10.54% year-on-year, and net profit at 172 million yuan, down 39.94% year-on-year [1][2] - The semiconductor sector is experiencing steady growth, while the photovoltaic industry faces challenges due to supply-demand mismatches, and the aerospace sector has seen a decrease in demand, impacting sales orders [1][2] - The company has made significant breakthroughs in high-performance composite materials, which are expected to enhance revenue generation [2] - The company is focused on innovation and deepening its core product offerings, establishing a comprehensive R&D platform to support its growth in high-tech industries [2] - The company is projected to benefit from the increasing demand in the aerospace sector, with net profit forecasts for 2024-2026 at 573 million, 721 million, and 873 million yuan, respectively [2] Financial Summary - Total revenue is forecasted to grow from 2,091 million yuan in 2023 to 3,412 million yuan in 2026, with a compound annual growth rate (CAGR) of 18.06% [1][8] - The net profit is expected to increase from 574 million yuan in 2023 to 927 million yuan in 2026, reflecting a CAGR of 21.17% [1][8] - The earnings per share (EPS) is projected to rise from 1.03 yuan in 2023 to 1.68 yuan in 2026 [1][8] - The price-to-earnings (P/E) ratio is expected to decrease from 28.12 in 2023 to 17.31 in 2026, indicating improving valuation [1][8]