PRET(SZ:002324) EBSCN·2024-09-02 08:42Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company reported a decline in profitability for H1 2024, with revenue of 3.75 billion yuan, down 7.34% year-on-year, and a net profit of 144 million yuan, down 28.47% year-on-year [1] - The new battery production capacity is expected to be gradually released, with increased investment in sodium-ion battery research and development [1] - The company remains a leader in the modified materials industry, optimizing its global supply chain [1] - Profit forecasts for 2024-2025 have been revised downwards due to a continued decline in battery prices, with net profits expected to be 301 million yuan and 333 million yuan respectively [1] Summary by Sections Financial Performance - For H1 2024, the company achieved revenue of 3.75 billion yuan, a decrease of 7.34% year-on-year, and a net profit of 144 million yuan, a decrease of 28.47% year-on-year [1] - In Q2 2024, revenue was 1.80 billion yuan, down 15.71% year-on-year and 7.44% quarter-on-quarter, with a net profit of 66 million yuan, down 32.95% year-on-year and 16.44% quarter-on-quarter [1] - The gross margin remained stable year-on-year, with specific segments showing varied performance [1] Business Segments - In the modified plastics segment, revenue from general modified materials was 1.62 billion yuan, up 13.79% year-on-year, while engineering modified materials revenue was 758 million yuan, down 3.09% year-on-year [1] - In the new energy battery segment, revenue from various battery types showed mixed results, with the cylindrical lithium-ion battery revenue increasing by 58.82% year-on-year, while phosphate lithium-ion battery revenue decreased by 71.60% year-on-year [1] Capacity and R&D - The company has a total battery production capacity of 2.83 GWh/year for cylindrical lithium batteries and 1.19 GWh/year for square phosphate lithium batteries, with additional capacity under construction [1] - The company has been investing in sodium-ion battery technology since 2022, developing multiple specifications for various applications [1] Market Position - The company has established itself as a leader in the modified materials industry, with a production capacity of 430,000 tons and additional capacity under construction [1] - The company is expanding its global supply chain with new manufacturing bases in Mexico and Thailand [1]