美畅股份：竞争加剧盈利承压，布局钨丝巩固优势

Investment Rating - The investment rating for Meichang Co., Ltd. is "Buy" (maintained) [1] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue of 1.484 billion yuan, down 32% year-on-year, and a net profit of 276 million yuan, down 69% year-on-year [1] - The sales volume of diamond wires increased by 24.7% year-on-year, reaching 72.2757 million kilometers, despite a competitive market leading to a rapid decline in product prices [1] - The company is actively advancing tungsten wire research and production to enhance product competitiveness and maintain its leading market position [1] Summary by Sections Performance Overview - In Q2 2024, the company achieved revenue of 628 million yuan, a decrease of 47% year-on-year and 27% quarter-on-quarter, with a net profit of 80 million yuan, down 84% year-on-year and 59% quarter-on-quarter [1] - The average selling price of diamond wire products fell to 19.59 yuan per kilometer, a decrease of 47% year-on-year [1] Operational Analysis - The company maintained a leading position in the diamond wire industry, with a sales volume of approximately 3.366 million kilometers in Q2 2024, an increase of 8% year-on-year but a decrease of 13% quarter-on-quarter [1] - The unit cost of diamond wire products was 13.66 yuan per kilometer, down 9% year-on-year, indicating effective cost management despite industry challenges [1] Financial Health - The company recorded a provision for inventory impairment of 37 million yuan due to product updates, impacting performance [1] - As of the end of Q2, the company had sufficient cash reserves of 1.09 billion yuan and a low debt-to-asset ratio of 10.6%, ensuring financial stability [1] Profit Forecast and Valuation - The net profit forecasts for 2024-2026 have been revised down to 450 million yuan (-42%), 460 million yuan (-47%), and 610 million yuan (-40%) respectively [1] - The current stock price corresponds to a price-to-earnings ratio of 18/18/13 times for the respective years, and the "Buy" rating is maintained based on the company's profit advantages [1]