XTC(SH:600549) Minsheng Securities·2024-08-29 10:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16.52 CNY per share [2]. Core Views - The company reported a revenue of 17.162 billion CNY for H1 2024, a year-on-year decrease of 8.37%, while the net profit attributable to shareholders was 1.017 billion CNY, an increase of 28.47% [1][7]. - The tungsten and molybdenum segment showed strong performance, driven by rising tungsten prices and increased sales of photovoltaic tungsten wire [1][19]. - The energy new materials segment experienced a decline in profitability due to intensified competition and falling raw material prices, despite a significant increase in sales volume for lithium cobalt oxide and ternary materials [1][35]. - The rare earth segment saw a decrease in profits due to the exclusion of certain subsidiaries from the consolidated financial statements and increased competition [1][40]. Summary by Sections 1. Company Overview - The company released its H1 2024 report, showing a revenue of 171.62 billion CNY and a net profit of 10.17 billion CNY, with significant growth in net profit compared to the previous year [1][7]. 2. Tungsten and Molybdenum Segment - The tungsten and molybdenum segment generated a revenue of 86.03 billion CNY, accounting for 50.13% of total revenue, with a gross profit margin of 28.23% [12][19]. - The segment's profit totaled 14 billion CNY in 2023, a 30% increase year-on-year, and is expected to continue benefiting from rising tungsten prices and increased production capacity [1][19]. 3. Energy New Materials Segment - The energy new materials segment reported a revenue of 62.15 billion CNY, a decrease of 22.30% year-on-year, with a gross profit margin of 9.41% [35]. - Sales volumes for lithium cobalt oxide and ternary materials increased significantly, with ternary material sales up 109% year-on-year [37]. 4. Rare Earth Segment - The rare earth segment's revenue decreased by 16.73% to 20.14 billion CNY, with a gross profit margin of 9.66% [40]. - The decline in revenue was attributed to the exclusion of certain subsidiaries from the consolidated financial statements and increased competition in the market [44]. 5. Future Outlook - The company expects continued growth in the tungsten and molybdenum segment, driven by rising prices and increased production capacity, particularly in photovoltaic tungsten wire [1][19]. - The energy new materials segment is focusing on expanding production capacity for lithium-ion battery materials to meet growing demand [39].