JJHB(SH:603279) Huaan Securities·2024-08-29 10:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a stable revenue growth of 31.27 billion yuan in the first half of 2024, reflecting a year-on-year increase of 2.34%, while the net profit attributable to the parent company decreased by 4.28% to 4.59 billion yuan [3][4] - The company has improved its product technology, holding 875 domestic patents and 33 international invention patents as of June 30, 2024, with significant applications in various industries [3][4] - The company is focusing on expanding its overseas market, achieving 1.51 billion yuan in overseas revenue in the first half of 2024, accounting for 4.84% of total revenue, despite a year-on-year decline of 12.81% [3][4] Financial Performance - In the first half of 2024, the company achieved a net cash flow from operating activities of 2.67 billion yuan, a significant increase of 6477.59% [3] - The company’s revenue forecast for 2024-2026 has been adjusted to 65.48 billion yuan, 70.65 billion yuan, and 76.41 billion yuan respectively, with net profit forecasts of 10.12 billion yuan, 11.22 billion yuan, and 12.45 billion yuan [4] - The diluted EPS for 2024-2026 is projected to be 1.76 yuan, 1.95 yuan, and 2.16 yuan respectively, with corresponding P/E ratios of 10, 9, and 8 [4][6] Market Position and Future Outlook - The company has established a leading position in the domestic filtration machinery industry, with a strong customer base and long-term partnerships [3][4] - The demand in downstream industries, particularly in the renewable energy sector, is expected to grow rapidly, especially in lithium battery recycling, which presents significant market opportunities [3][4]