YONGXING MATERIALS(SZ:002756) Minsheng Securities·2024-09-03 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company reported a revenue of 4.49 billion yuan for H1 2024, a year-on-year decrease of 32.5%, and a net profit attributable to shareholders of 770 million yuan, down 59.6% year-on-year [1]. - The lithium carbonate price in H1 2024 averaged 103,000 yuan per ton, a decrease of 68.2% year-on-year, while the company has implemented cost reduction measures across its operations [1]. - The special steel segment has seen a profit margin of 12.3% in H1 2024, an increase of 1.8 percentage points year-on-year, driven by product structure optimization and cost control [1]. - The company announced a mid-term dividend plan, proposing a cash dividend of 5.0 yuan per 10 shares, totaling 260 million yuan, with a dividend payout ratio of 34.4% [1]. - The company is focusing on integrated production expansion and cost optimization in its lithium extraction operations, with a target net profit attributable to shareholders of 1.17 billion yuan, 1.20 billion yuan, and 1.53 billion yuan for 2024, 2025, and 2026 respectively [1]. Financial Summary - For H1 2024, the company achieved a revenue of 4.49 billion yuan, a decrease of 32.5% year-on-year, and a net profit of 770 million yuan, down 59.6% year-on-year [1]. - The gross profit margin for lithium extraction dropped to 38.7%, a decline of 37.0 percentage points year-on-year, primarily due to falling lithium prices [1]. - The company’s special steel business maintained a high profit level, with a gross margin of 12.3% in H1 2024, reflecting successful market expansion in high-value sectors [1]. - The projected earnings per share for the company are 6.32 yuan, 2.17 yuan, 2.22 yuan, and 2.83 yuan for the years 2024, 2025, and 2026 respectively [6].