Ningbo Solartron Technology (SH:688299) Shanghai Securities·2024-09-04 02:30Investment Rating - The investment rating for the company is "Buy" (maintained) [6][15]. Core Views - The company reported a revenue of 647 million yuan for the first half of 2024, representing a year-on-year growth of 14.82%. However, the net profit attributable to shareholders decreased by 71.92% to 17.06 million yuan due to ongoing capacity ramp-up and construction of projects [6][4]. - The traditional business remains stable, with the reflective film segment maintaining a high gross margin of 36.56% and holding the leading global market share. The company is expanding into new applications such as Mini LED reflective films [6][5]. - The company is focusing on the development of lithium battery separators, with a unique product that has high porosity and large pore size, which is expected to significantly enhance the performance of solid-state and semi-solid batteries [5][6]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a net profit of 8.82 million yuan, a quarter-on-quarter increase of 7.19%, with a gross margin of 25.68% [6][4]. - The company forecasts revenues of 1.535 billion yuan, 2.127 billion yuan, and 2.625 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 22.44%, 38.61%, and 23.42% [6][8]. Business Segments - Reflective Films: The company continues to dominate the market with a stable increase in sales and a high gross margin, benefiting from trends in larger television sizes and increased Mini LED penetration [6][5]. - Optical Base Films: The company is improving key indicators and increasing the proportion of high-end products, leading to a quarterly improvement in gross margin [6][4]. Future Growth Potential - The company is strategically positioning itself in the solid-state and semi-solid battery separator market, predicting a demand for 1.5 to 2 billion square meters of new functional separators as the industry grows [5][6]. - The CPI film market is also targeted for growth, with the company aiming to break the long-standing foreign monopoly through its own R&D efforts [5][6].