GRIPM(SH:688456) Minsheng Securities·2024-08-29 06:00Investment Rating - The report maintains a "Recommended" rating for the company, with expected net profits for 2024-2026 being 71 million, 95 million, and 117 million CNY respectively, corresponding to PE ratios of 37, 28, and 23 based on the stock price as of August 28 [1][3]. Core Insights - The company achieved a revenue of 1.513 billion CNY in H1 2024, representing a year-on-year increase of 19.32%. The net profit attributable to shareholders was 29.39 million CNY, a slight decrease of 1.11% year-on-year, while the net profit excluding non-recurring items increased by 25.42% to 22.75 million CNY [1]. - The sales of traditional copper and tin powders grew steadily, while emerging businesses such as 3D printing powders and electronic pastes saw rapid growth, with 3D printing powder sales increasing by 163% year-on-year [1]. - The company's gross margin improved to 8.86% in H1 2024, up 0.66 percentage points year-on-year, driven by the recovery of overseas high-margin business demand and continuous optimization of product structure [1]. - The Thailand base commenced operations in June 2024, enhancing the company's global business layout, with a production capacity of approximately 5,000 tons of copper-based and 1,000 tons of tin-based materials [1]. - The newly launched thermal conductive copper powder is expected to benefit from the growth in AI applications, with performance improvements of 10%-20% over traditional atomized copper powder [1]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 1.513 billion CNY, with a 19.32% increase year-on-year. Q2 revenue reached 852 million CNY, a quarter-on-quarter increase of 28.88% and a year-on-year increase of 29.04% [1]. - The gross margin for H1 2024 was 8.86%, reflecting a steady increase due to improved product structure and demand recovery [1]. Business Segments - Traditional copper and tin powder sales grew, with copper powder sales up 13% year-on-year, supported by demand from the new energy vehicle and high-speed rail markets [1]. - The 3D printing powder segment saw a significant increase in sales, driven by market expansion and product validation [1]. - The electronic paste segment also experienced a 130% year-on-year increase in sales, attributed to ongoing product iterations and new customer acquisition [1]. Future Outlook - The company is positioned as a leader in domestic copper and tin powder materials, with new product launches and market demand expected to drive growth [1]. - The Thailand production base is anticipated to become a new profit growth point as it ramps up production [1].