Pylon Technologies(SH:688063) EBSCN·2024-08-27 02:03Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with a revenue of 859 million yuan, down 66.39% year-on-year, and a net profit of 20 million yuan, down 97.13% year-on-year [2][3] - The second quarter of 2024 showed signs of recovery with a revenue of 474 million yuan, a year-on-year decline of 33.86% but a quarter-on-quarter increase of 22.86%, and a net profit of 16 million yuan, down 93.13% year-on-year but up 296.86% quarter-on-quarter [2][3] - The company expects gradual improvement in profitability as inventory levels in overseas markets stabilize and production capacity utilization increases [3] Summary by Sections Financial Performance - The company’s average selling price for energy storage batteries in the first half of 2024 was 1.49 yuan/Wh, a decrease of 14% compared to 2023 [3] - The gross margin for Q2 2024 was 38.51%, an increase of 2.75 percentage points quarter-on-quarter and 6.47 percentage points year-on-year [3] - The net profit margin for Q2 2024 was 3.35%, an increase of 2.33 percentage points quarter-on-quarter but a decrease of 28.93 percentage points year-on-year [3] Strategic Initiatives - The company is deepening its globalization strategy and has launched new energy storage products for the commercial and industrial storage market [3] - The company’s sodium-ion battery products have achieved mass shipment after passing relevant certifications in Japan and Germany [3] Profit Forecast and Valuation - The profit forecast for 2024-2026 has been revised down to 101 million, 449 million, and 589 million yuan respectively, reflecting a reduction of 75%, 19%, and 14% [3] - The current stock price corresponds to a price-to-earnings ratio (PE) of 88, 20, and 15 for the years 2024, 2025, and 2026 respectively [3]