XTC(SH:600549) Guotai Junan Securities·2024-08-27 05:58Investment Rating - The report maintains a "Buy" rating for Xiamen Tungsten Co., Ltd. with a target price of 24.50 CNY, up from the previous target of 24.17 CNY [4][5]. Core Insights - In H1 2024, the tungsten and molybdenum segment experienced significant growth due to rising prices of tungsten ore and increased sales in photovoltaic tungsten wire and cutting tools, contributing to the overall performance of the company [4][5]. - The company achieved a net profit attributable to shareholders of approximately 1.016 billion CNY in H1 2024, representing a year-on-year increase of 28.47%. In Q2 alone, the net profit was 589 million CNY, up 67.83% year-on-year and 38.02% quarter-on-quarter [5]. - The report anticipates that the earnings per share (EPS) for 2024-2026 will be 1.40 CNY, 1.60 CNY, and 1.80 CNY respectively, with a reference PE ratio of 17.5 times for 2024 [5]. Summary by Sections Tungsten and Molybdenum Segment - Revenue for the tungsten and molybdenum segment in H1 2024 increased by 11.98% year-on-year to 8.781 billion CNY, with total profit rising by 29.5% to 1.427 billion CNY. Q2 revenue was 4.74 billion CNY, up 17% quarter-on-quarter, and total profit reached 888 million CNY, up 64% quarter-on-quarter [5]. - The average price of domestic tungsten concentrate (65% WO3) increased by 13.04% year-on-year to 134,400 CNY, enhancing the profitability of the company's self-produced ore [5]. New Energy Materials Segment - Revenue from the new energy materials business in H1 2024 was 6.3 billion CNY, down 22.43% year-on-year, with total profit decreasing by 10.06% to 246 million CNY. Q2 revenue was 3.001 billion CNY, down 9% quarter-on-quarter, but profit increased by 16% quarter-on-quarter [5]. - The decline in revenue was primarily due to falling raw material prices and intensified competition, but the company remains a leader in cobalt acid lithium products, with sales expected to improve as the industry stabilizes [5]. Rare Earth Segment - The rare earth segment reported revenue of 2.054 billion CNY in H1 2024, down 21.48% year-on-year, with total profit of 117 million CNY, down 23.50%. Q2 revenue was 1.14 billion CNY, up 25% quarter-on-quarter, and profit increased by 92.5% quarter-on-quarter [5]. - The segment's performance was affected by the integration and divestiture of rare earth smelting and separation businesses, along with price declines due to raw material costs and competition [5]. Real Estate Segment - The real estate segment generated revenue of 25 million CNY in H1 2024, down 67.47% year-on-year, but total profit increased by 174 million CNY due to the disposal of property equity in Chengdu Tengwangge, resulting in an investment income of 145 million CNY [5].