Ding Sheng New Material(603876) Soochow Securities·2024-09-02 23:00Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - Q2 profits significantly improved, slightly exceeding expectations, with total revenue for H1 2024 at 11.5 billion yuan, up 24.6% year-on-year, and net profit attributable to shareholders at 180 million yuan, down 47.6% year-on-year [2] - The profitability of lithium battery foil has stabilized at 2000 yuan/ton, with H1 shipments of 59,000 tons, a slight increase of 5% year-on-year, and Q2 shipments of 33,000 tons, up 6% quarter-on-quarter [2] - Traditional foil profitability improved in Q2, contributing to performance elasticity, with packaging foil shipments of 80,000 tons, a 30% increase quarter-on-quarter, and a profit contribution of approximately 60 million yuan [2] Financial Forecasts and Valuation - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 540 million yuan, 660 million yuan, and 860 million yuan respectively, with corresponding P/E ratios of 15x, 12x, and 9x [3] - The target price for 2024 is set at 12 yuan, based on a 20x P/E ratio [3] Revenue and Profitability Metrics - Total revenue for 2024 is projected to be 21.84 billion yuan, with a year-on-year growth of 14.57% [1][9] - The gross profit margin is expected to be 10.56% in 2024, with a net profit margin of 2.46% [10]