SD Lomon(002312) 海通国际·2024-08-28 10:03Investment Rating - The report maintains an "OUTPERFORM" rating for Sichuan Development Lomon, with a target price of RMB 8.32, indicating a potential upside from the current price of RMB 6.50 [1][3][9]. Core Insights - The company's recurring net profit increased by 47.93% year-on-year in H1 2024, driven by both volume and price increases of main products. Operating income reached RMB 4.025 billion, a 10.10% year-on-year growth, while net profit was RMB 294 million, up 26.68% year-on-year [2][5][6]. - The company is focusing on the integrated development model of mining and chemistry, enhancing its upstream resource supply capabilities with significant phosphorus ore reserves [7][8]. - New energy material projects are being developed to create a second growth curve, with ongoing projects in De'a and Panzhihua expected to contribute to future profit growth [8][9]. Financial Summary - For 2024, the company is projected to achieve a net profit of RMB 609 million, with EPS of RMB 0.32, followed by RMB 702 million and RMB 0.37 in 2025, and RMB 819 million with EPS of RMB 0.43 in 2026 [4][9]. - Revenue is expected to grow from RMB 7.708 billion in 2023 to RMB 10.226 billion by 2026, reflecting a compound annual growth rate [4][9]. - The gross profit margin is anticipated to improve from 13.1% in 2023 to 17.0% by 2026, indicating enhanced operational efficiency [4][9].