DFD(002407) Huaan Securities·2024-09-02 06:44Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's performance in the first half of 2024 (1H24) has been under pressure, with total revenue of 4.609 billion yuan, a year-on-year decrease of 12.46%. The net profit attributable to shareholders was 70 million yuan, down 73.78% year-on-year, and the net profit after deducting non-recurring gains and losses was 15 million yuan, down 93.27% year-on-year. The decline in performance is primarily attributed to intensified competition in the new energy sector and lower-than-expected downstream customer demand, despite an increase in the production and sales scale of lithium hexafluorophosphate [1][2] Summary by Sections Financial Performance - In 1H24, the average market price of lithium hexafluorophosphate decreased by 56.5% year-on-year, leading to a significant decline in the company's profitability. The company achieved total revenue of 2.480 billion yuan in Q2 2024, a year-on-year decrease of 11.21% but a quarter-on-quarter increase of 16.49%. The net profit attributable to shareholders in Q2 2024 was 31 million yuan, down 80.60% year-on-year and down 22.26% quarter-on-quarter [1] Business Segments - The electronic information materials segment has shown growth, with revenue of 588 million yuan in 1H24, an increase of 11.40% year-on-year, and a gross margin of 21.82%. The company has established long-term partnerships with several well-known semiconductor companies and is expected to have a broad market space in the future [1] Future Outlook - The company is expected to achieve net profits of 298 million yuan, 410 million yuan, and 712 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 40, 29, and 17 times. The long-term performance is supported by the rapid growth of various electrolyte lithium salts and electronic chemicals [2][4]