SPG(600529) Changjiang Securities·2024-09-02 05:48Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 2.586 billion in the first half of 2024, representing a year-on-year increase of 6.75%. The net profit attributable to shareholders was 475 million, up 23.26%, while the net profit after deducting non-recurring items was 455 million, an increase of 24.3% [5][6]. - In Q2, the company achieved a revenue of 1.318 billion, reflecting an 11.2% year-on-year growth, with a net profit of 254 million, up 16.2% [5][6]. - The company is expected to continue benefiting from the growing demand for borosilicate glass, with a projected increase in market penetration and production capacity [6]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a gross margin of 32.4%, an increase of 5.4 percentage points year-on-year, attributed to the decline in raw material prices and the rising proportion of high-margin borosilicate products [5][6]. - The company maintained a low debt ratio of 21.7% as of Q2 2023, indicating strong operational quality [6]. Market Outlook - The demand for borosilicate glass is expected to improve, with the penetration rate projected to reach 30% by the end of the year, supported by ongoing industry developments [6]. - The company plans to distribute a mid-term dividend of 199 million, with a payout ratio of 41.9%, reflecting its robust cash flow [6]. Future Projections - The company forecasts net profits of 990 million and 1.14 billion for 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 17 and 14 times [6].