SPG(SH:600529) Guolian Securities·2024-08-27 03:23Investment Rating - The investment rating for Shandong Pharmaceutical Glass (600529) is "Buy" [4][8]. Core Views - The company's performance exceeded market expectations, reflecting solid industry demand momentum and a steady increase in the penetration rate of borosilicate glass. The company maintains a strong competitive advantage as a leader in molded bottles, with accelerated capacity expansion in borosilicate glass likely to benefit from industry growth [3][8]. - The company has successfully expanded its product categories and overseas markets, indicating promising growth prospects [3][8]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 2.59 billion yuan, a year-on-year increase of 6.8%, and a net profit attributable to shareholders of 480 million yuan, up 23.3% year-on-year. The second quarter alone saw revenue of 1.32 billion yuan, a year-on-year increase of 11.2% and a quarter-on-quarter increase of 4.0% [8]. - The gross profit margin for H1 2024 was 32.4%, an increase of 5.4 percentage points year-on-year, with Q2 gross profit margin at 34.0%, up 3.7 percentage points year-on-year [8]. - The company achieved a net profit margin of 18.4% in H1 2024, an increase of 2.5 percentage points year-on-year [8]. Market Position and Growth Potential - The company is positioned as a leader in molded bottles, with stable growth in demand for pharmaceutical glass. The product structure is continuously improving, and the company is effectively expanding into new product categories and international markets [8]. - Revenue projections for 2024-2026 are estimated at 5.77 billion, 6.75 billion, and 7.99 billion yuan, representing year-on-year growth rates of 16%, 17%, and 18%, respectively [8]. Dividend Policy - The company announced its first interim dividend, distributing 3 yuan per 10 shares (including tax), with a total cash dividend of 199 million yuan, resulting in a dividend payout ratio of 41.90%, higher than the average of 33.43% over the past five years [8].