HAILIANG(SZ:002203) SINOLINK SECURITIES·2024-09-01 03:40Investment Rating - The report maintains a "Buy" rating for the company [2][9][10] Core Views - In the first half of 2024, the company achieved revenue of 44.033 billion RMB, a year-on-year increase of 0.6%, while net profit attributable to shareholders was 618 million RMB, a decrease of 13.76% [2] - The company experienced a significant increase in copper processing product sales, with a total of 506,900 tons sold in the first half of 2024, representing a year-on-year growth of 14.04% [2] - The company is expanding its overseas operations, including a new project in Morocco, which is part of its global strategy to mitigate domestic competition risks [2] Summary by Relevant Sections Financial Performance - In 1H24, the company reported a net profit of 618 million RMB, down 13.76% year-on-year, and a non-recurring net profit of 622 million RMB, down 27.46% [2] - The second quarter of 2024 saw a net profit of 303 million RMB, a decrease of 20.92% year-on-year, but a 13.02% increase quarter-on-quarter [2] - The company faced a significant foreign exchange loss of 67.67 million RMB in 1H24 due to the depreciation of the RMB against the USD [2] Sales and Production - The company’s copper foil sales surged by 450.51% year-on-year, contributing significantly to the overall sales growth [2] - The processing fees for lithium battery copper foil have been declining, impacting the profitability of newly added production capacity [2] Strategic Initiatives - The company is investing in a new materials technology industrial park in Morocco, which will include multiple production lines for copper and copper alloys, aiming to enhance its global presence [2] - This expansion is expected to leverage the company's international operational advantages and diversify its market resources [2] Earnings Forecast - Projected revenues for 2024, 2025, and 2026 are 93.3 billion RMB, 110.4 billion RMB, and 119.2 billion RMB, respectively, with net profits expected to be 1.275 billion RMB, 1.564 billion RMB, and 1.908 billion RMB [2][6]