WEDGE(000534) 民生证券·2024-09-02 05:02Investment Rating - Maintain "Recommend" rating [2][4] Core Views - The company achieved steady growth in 1H24 with revenue of RMB 500 million, YoY +5.7%, and net profit attributable to parent company of RMB 98 million, YoY +12.5% [2] - The company's pharmaceutical revenue increased by 10.2% YoY to RMB 400 million in 1H24, while high-temperature alloy revenue decreased by 11.5% YoY to RMB 100 million [2] - The company is actively preparing for increased demand in the new materials sector, with inventory increasing by 40.6% to RMB 300 million at the end of 1H24 [2] - The company is expected to achieve net profit attributable to parent company of RMB 210 million, RMB 290 million, and RMB 360 million in 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 23x, 17x, and 13x [2] Financial Performance - 2Q24 revenue was RMB 210 million, YoY +9.4%, with net profit attributable to parent company of RMB 32 million, YoY +12.6% [2] - 1H24 gross margin increased by 1.0ppt to 76.9%, and net margin increased by 0.8ppt to 19.1% [2] - R&D expenses increased by 92.8% YoY to RMB 60 million in 1H24, with R&D expense ratio increasing by 5.3ppt to 11.7% [2] - Accounts receivable increased by 20.2% to RMB 400 million at the end of 1H24, and construction in progress increased by 22.2% to RMB 750 million [2] Business Segments - Pharmaceutical products: Revenue of RMB 400 million in 1H24, YoY +10.2%, with gross margin of 88.8%, up 0.3ppt YoY [2] - High-temperature alloy products: Revenue of RMB 100 million in 1H24, YoY -11.5%, with gross margin of 32.9%, down 4.1ppt YoY [2] - Subsidiaries in the new materials sector showed mixed performance, with Shenzhen Wanze and Wanze Aviation Materials achieving revenue growth, while Shanghai Wanze and Wanze Central South Research Institute experienced revenue declines [2] Future Outlook - The company is a leader in pharmaceutical microecological live bacteria and has grown into a core supplier of "two-engine" hot-end components in the high-temperature alloy field [2] - The company's capabilities in master alloy, cast blades, and powder turbine disks are highly scarce [2] - The company is expected to maintain steady growth in the pharmaceutical sector and capitalize on the increasing demand in the new materials sector [2]