SPG(600529) China Post Securities·2024-08-28 09:12Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company reported a revenue of 2.59 billion yuan for the first half of 2024, reflecting a year-on-year increase of 6.75%, with a net profit of 475 million yuan, up 23.26% year-on-year [4]. - The demand for borosilicate molded bottles continues to grow, driven by consistency evaluations and centralized procurement, leading to significant production capacity expansion [4]. - The company's gross margin improved significantly to 32.35%, an increase of 5.43 percentage points year-on-year, attributed to lower raw material and energy costs, as well as a shift in product mix towards higher-margin products [4]. - The net profit margin reached 19.3% in Q2 2024, marking a historical high for a single quarter [4]. - The company plans to distribute its first interim dividend, proposing a cash dividend of 3.00 yuan per 10 shares, with a payout ratio of 41.9% [4]. Financial Projections - Revenue projections for 2024 and 2025 are 5.66 billion yuan and 6.34 billion yuan, respectively, representing year-on-year growth of 13.6% and 12.1% [6]. - The forecasted net profit for 2024 and 2025 is 970 million yuan and 1.14 billion yuan, indicating year-on-year growth of 25.6% and 16.9% [6]. - The expected price-to-earnings (P/E) ratios for 2024 and 2025 are 16X and 14X, respectively [4][6].