GUIBAO TECH(SZ:300019) Guotai Junan Securities·2024-08-28 14:40Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company's 2024 mid-year report fell short of expectations, with construction and industrial adhesives maintaining leading sales growth in the industry, but increased price competition and short-term cost increases impacted profitability [3] - The revenue for the first half of the year was 1.158 billion yuan, a year-on-year decrease of 2.95%, and the net profit attributable to shareholders was 102 million yuan, a year-on-year decrease of 23.12% [4] - The target price has been adjusted down to 13.09 yuan from the previous forecast of 18.09 yuan, based on a revised EPS forecast for 2024-2026 [4] Summary by Sections Revenue and Profitability - The company achieved a revenue of 684 million yuan in Q2, a year-on-year increase of 3.17%, but the net profit was 62 million yuan, down 20.33% year-on-year, which was below expectations [4] - The revenue from construction adhesives in the first half was 699 million yuan, a year-on-year decrease of 9.77%, with sales volume remaining flat [4] Product Performance - Industrial adhesives saw a revenue of 341 million yuan in the first half, a year-on-year increase of 16.50%, with sales volume up 29% [4] - The main products in industrial adhesives, including photovoltaic, electronic, and automotive adhesives, had revenue growth rates of 0.98%, 35%, and 45% respectively [4] Cost and Margin Analysis - The gross margins for construction and industrial adhesives were 22.02% and 28.77%, reflecting a year-on-year decrease of 3.06 percentage points and an increase of 1.17 percentage points respectively [4] - Increased sales and management expense ratios were noted, with sales expenses rising due to market expansion activities and management expenses increasing due to stock incentive costs [4] Market Data - The company's current stock price is 10.64 yuan, with a market capitalization of 4.118 billion yuan [5] - The stock has traded within a range of 10.16 to 17.29 yuan over the past 52 weeks [5]