FARATRONIC(600563) Shanxi Securities·2024-08-26 12:29Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for its stock performance in the near term [4]. Core Views - The company is a global leader in the film capacitor manufacturing industry, benefiting from the growing demand in the new energy sector, particularly in electric vehicles and energy storage [1][3]. - The company has maintained high profit margins and return on equity (ROE), supported by strong free cash flow, which underscores its competitive advantages in the industry [1]. - The report highlights a turning point in profitability for Q2 2024, driven by a recovery in energy storage demand and stable growth in the electric vehicle market [3]. Company Performance Summary - In H1 2024, the company achieved revenue of 2.117 billion yuan, a year-on-year increase of 7.38%, while the net profit attributable to shareholders was 482 million yuan, a decrease of 1.86% [2]. - For Q2 2024, revenue reached 1.137 billion yuan, marking a year-on-year growth of 9.07% and a quarter-on-quarter increase of 15.99% [2]. - The gross margin for Q2 2024 was reported at 34.92%, reflecting a 1.8 percentage point increase from the previous quarter, attributed to a higher proportion of energy storage products and a decline in raw material prices [3]. Financial Projections - The company is projected to achieve net profits of 1.113 billion yuan, 1.340 billion yuan, and 1.607 billion yuan for the years 2024, 2025, and 2026, respectively [5]. - Earnings per share (EPS) are expected to be 4.94 yuan, 5.95 yuan, and 7.14 yuan for the same years [5]. - The report indicates that the company's price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 14.8, 12.3, and 10.3, respectively, suggesting that the stock is currently undervalued [5][8].