DKEM(SZ:300842) Minsheng Securities·2024-08-29 11:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its performance and market position [1][3]. Core Insights - The company, as a leader in N-type silver paste, is expected to benefit from the N-type iteration and the introduction of LECO technology, which is becoming a standard in TOPCon battery mass production [1]. - In the first half of 2024, the company achieved a revenue of 7.587 billion yuan, a year-on-year increase of 118.30%, and a net profit attributable to shareholders of 233 million yuan, up 14.89% year-on-year [1]. - The company’s silver paste sales reached 1,132.05 tons in the first half of 2024, a 76.09% increase year-on-year, with N-type TOPCon battery products accounting for 87.28% of total sales [1]. Financial Performance - For 2024, the company is projected to generate revenues of 15.71 billion yuan, with a growth rate of 63.6%, and a net profit of 563 million yuan, reflecting a growth rate of 46.0% [2][4]. - The company’s earnings per share (EPS) is expected to rise from 2.74 yuan in 2023 to 4.00 yuan in 2024, with a price-to-earnings (PE) ratio decreasing from 13 to 9 [2][4]. - The report highlights a significant increase in the company's operating profit, which is projected to reach 623 million yuan in 2024, up from 408 million yuan in 2023 [4]. Market Position and Strategy - The company is positioned to deepen its semiconductor paste layout, transitioning its product promotion from small to medium and large clients, enhancing its brand influence in the semiconductor electronics sector [1]. - The company is investing in high-performance electronic materials projects, including a silver nitrate project with an annual output of 5,000 tons, further strengthening its industry position [1].