Yangling Metron New Material (300861) 光大证券·2024-08-31 04:14Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company's sales volume of diamond wire continues to grow steadily, but intensified industry competition has led to ongoing pressure on profitability [1][3]. - Despite a significant decline in revenue and net profit in the first half of 2024, the company achieved a record high in net cash flow from operating activities, indicating strong cash management [1]. - The company prioritizes technological research and development, with a focus on innovation in response to market demands, while also extending its reach upstream in the supply chain [1]. Summary by Relevant Sections Financial Performance - In H1 2024, the company reported revenue of 1.484 billion yuan, a year-on-year decrease of 31.55%, and a net profit of 276 million yuan, down 69.11% [1]. - In Q2 2024, revenue was 628 million yuan, a decline of 46.55%, with a net profit of 80 million yuan, down 84.36% [1]. - The diamond wire business generated revenue of 1.416 billion yuan in H1 2024, a decrease of 34.14%, with a gross margin down 29.28 percentage points to 30.29% [1]. Sales and Market Position - The company sold 72.2757 million kilometers of electroplated diamond wire in H1 2024, representing a year-on-year increase of 24.70%, maintaining a leading position in the industry [1]. Cash Flow and Management - The net cash flow from operating activities reached 804 million yuan in H1 2024, marking the best performance in history, with cash and cash equivalents at 1.085 billion yuan at the end of the reporting period [1]. Research and Development - R&D investment in H1 2024 decreased by 22.78% to 30 million yuan, but its proportion of revenue increased by 0.23 percentage points to 2.03% [1]. - The R&D team focused on innovations related to the demand for thinner and larger photovoltaic slices, continuously iterating product lines [1]. Future Outlook - The report projects net profits for 2024-2026 to be 494 million, 557 million, and 636 million yuan respectively, reflecting downward adjustments of 38% for 2024 and 2025, and 37% for 2026 [1].