CHANGHAI(SZ:300196) Minsheng Securities·2024-08-24 04:00Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company reported a revenue of 1.224 billion yuan for the first half of 2024, a year-on-year decrease of 6.40%, with a net profit attributable to shareholders of 122 million yuan, down 42.01% year-on-year [1]. - In Q2 2024, the company experienced a revenue of 643 million yuan, a decline of 8.74% year-on-year, and a net profit of 71 million yuan, down 44.82% year-on-year [1]. - The company plans to implement an interim dividend in 2024, which is expected to boost investor confidence [2]. Financial Performance - The gross margin for H1 2024 was 22.80%, a decrease of 4.49 percentage points year-on-year, while the net profit margin was 9.95%, down 6.13 percentage points year-on-year [1]. - The revenue structure shows that fiberglass and products accounted for 74.43%, chemical products for 23.66%, and fiberglass reinforced plastic products for 1.91% [1]. - The company’s H1 2024 revenue from fiberglass and products was 911 million yuan, a year-on-year decrease of 4.26%, with a gross margin of 24.99%, down 4.78 percentage points year-on-year [2]. Market Dynamics - The fiberglass market is significantly influenced by demand, which is closely related to the macroeconomic environment. The first half of 2024 saw a rebound in prices after a low point in Q1 [2][3]. - The company’s overseas revenue accounted for 27% in H1 2024, with a cumulative export volume of fiberglass and products increasing by 15.5% year-on-year from January to July 2024 [3]. Production Capacity - The company has a high-performance fiberglass intelligent manufacturing base project with a capacity of 600,000 tons, with the first phase nearing completion [4]. - The company is upgrading its existing production line to increase capacity from 30,000 tons to 80,000 tons for high-end fiberglass and special fabrics [4]. Investment Outlook - The report suggests continued attention to the company’s full industry chain layout in fiberglass, which is expected to enhance competitiveness post-capacity release [4]. - The projected net profits for the company from 2024 to 2026 are estimated at 289 million, 433 million, and 584 million yuan, respectively, with corresponding dynamic PE ratios of 13X, 9X, and 6X [4][5].