First(SH:603806) Great Wall Securities·2024-08-28 10:19Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [10]. Core Views - The company demonstrated stable performance in H1 2024, with revenue reaching 10.764 billion yuan, a year-on-year increase of 1.39%, and a net profit attributable to shareholders of 928 million yuan, up 4.95% year-on-year [1]. - The company continues to expand its overseas production capacity, with expectations for total capacity in Thailand and Vietnam to reach approximately 600 million square meters by 2025, which is anticipated to enhance profitability [1]. - The photovoltaic film shipments increased significantly, with H1 2024 shipments of approximately 1.389 billion square meters, a year-on-year growth of 43.61% [1]. Financial Performance Summary - Revenue: The company reported revenues of 18,877 million yuan in 2022, projected to grow to 34,186 million yuan by 2026, with a compound annual growth rate (CAGR) of 15.0% [1][6]. - Net Profit: The net profit attributable to shareholders is expected to rise from 1,579 million yuan in 2022 to 3,362 million yuan in 2026, reflecting a CAGR of 21.4% [1][6]. - EPS: The earnings per share (EPS) is projected to increase from 0.61 yuan in 2022 to 1.29 yuan in 2026 [1][6]. - P/E Ratio: The price-to-earnings (P/E) ratio is expected to decrease from 23.1 in 2022 to 10.8 by 2026, indicating improved valuation attractiveness [1][6]. Market Position and Strategy - The company holds a market share exceeding 50% in the photovoltaic film sector, solidifying its position as an industry leader [1]. - The report highlights the company's strong R&D capabilities and customer channel advantages, with notable clients in the electronics materials sector [1]. - The expansion into new materials and the increasing demand in the PCB industry due to AI advancements are expected to further drive growth [1].