LZJT(SZ:300428) Huachuang Securities·2024-08-29 00:23Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 23.3 CNY, compared to the current price of 15.45 CNY [1]. Core Views - The company achieved a record high revenue of 12.5 billion CNY in the first half of 2024, representing a year-on-year increase of 15%. The net profit attributable to shareholders reached 382 million CNY, up 54% year-on-year [1]. - In Q2 2024, the company reported revenue of 6.5 billion CNY, with a year-on-year growth of 14% and a quarter-on-quarter growth of 10%. The growth was driven by increased sales volume and aluminum prices, aligning with industry performance [1]. - The company has successfully launched its heat-resistant materials production, which is expected to significantly contribute to future revenue growth [1]. Financial Performance Summary - Total revenue for 2023 was 23.365 billion CNY, with projected revenues of 25.158 billion CNY in 2024, 28.130 billion CNY in 2025, and 32.496 billion CNY in 2026, reflecting a compound annual growth rate (CAGR) of approximately 15.5% [2][3]. - The net profit attributable to shareholders is expected to grow from 606 million CNY in 2023 to 790 million CNY in 2024, with further increases to 962 million CNY in 2025 and 1.165 billion CNY in 2026, indicating a strong growth trajectory [2][3]. - The company's earnings per share (EPS) is projected to rise from 0.96 CNY in 2023 to 1.25 CNY in 2024, and further to 1.84 CNY by 2026 [2][3]. Business Segments and Growth Drivers - The company is focusing on three main business segments: casting aluminum alloys, aluminum wheels, and intermediate alloys, all of which are expected to show stable growth [1]. - The casting aluminum alloy segment is anticipated to recover, while the aluminum wheel segment is projected to continue its growth trend of over 20% in 2023 despite a high base [1]. - The intermediate alloy segment is expected to maintain a steady annual growth rate of 10-15% [1].