Yunlu Materials(SH:688190) Hua Yuan Zheng Quan·2024-09-02 05:07Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance and growth potential [2][3]. Core Insights - The company reported a revenue of 910 million yuan for H1 2024, reflecting a year-on-year increase of 7.37%, with a net profit of 167 million yuan, up 1.62% year-on-year [2]. - The demand for amorphous materials is expected to rise due to favorable policies and high industry growth, particularly in sectors such as power distribution, photovoltaics, and new energy vehicles [2]. - The company is progressing well with its new production line for amorphous materials, expected to reach full capacity in the second half of 2024 [2]. - Continuous investment in R&D has led to a significant increase in R&D expenses, which rose by 65.61% year-on-year to 59.27 million yuan in H1 2024 [2]. Financial Forecast and Valuation - The company is projected to achieve net profits of 360 million yuan, 410 million yuan, and 530 million yuan for the years 2024, 2025, and 2026, respectively [3]. - The estimated price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 22x, 19x, and 15x, respectively, indicating a favorable valuation trend as the company benefits from the demand for amorphous alloys and other materials [3][4]. - Revenue is expected to grow steadily, with total revenue projected at 1.91 billion yuan for 2024, reflecting an 8.07% year-on-year growth [4].