华宏科技：利润扭亏为盈，期待稀土价格企稳&产能落地释放业绩

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong outlook for future performance [3]. Core Views - The company achieved a turnaround in profitability in H1 2024, with a net profit of 0.02 billion yuan, a year-on-year increase of 101.2%, despite a 30% decline in the market price of key rare earth products [1]. - The company's revenue for H1 2024 was 2.7 billion yuan, reflecting a year-on-year growth of 23.6% [1]. - The report highlights the significant improvement in the company's profitability, with a gross margin of 5.0% and a net margin of 0.4% in H1 2024, both showing substantial year-on-year increases [1]. - The company is focused on rare earth recycling and has plans to expand its production capacity, with a new project in Inner Mongolia expected to enhance performance once rare earth prices stabilize [1]. - The report notes the potential for synergy between the company's rare earth recycling business and the increasing demand for scrapped vehicles, driven by government policies aimed at boosting recycling [1]. Financial Summary - For H1 2024, the company reported a revenue of 2.7 billion yuan, with a net profit of 0.02 billion yuan [1]. - The projected net profits for 2024, 2025, and 2026 are 0.4 billion yuan, 1.7 billion yuan, and 3.0 billion yuan, respectively, with corresponding P/E ratios of 84.5, 19.8, and 11.3 [1][2]. - The company’s revenue is expected to decline to 4.635 billion yuan in 2024, followed by a recovery to 5.329 billion yuan in 2025 and 6.490 billion yuan in 2026 [2][10].