NOVEL(SZ:002014) Guotou Securities·2024-09-05 16:08Investment Rating - The report maintains a "Buy-A" investment rating for the company with a target price of 11.85 CNY, while the current stock price is 8.53 CNY as of September 5, 2024 [1][6]. Core Insights - The company has shown steady performance in 2023 with high dividends, continuously rewarding shareholders [1]. - The revenue for H1 2024 reached 1.651 billion CNY, a year-on-year increase of 2.84%, while the net profit attributable to shareholders was 180 million CNY, up 1.78% year-on-year [2]. - The company is focusing on expanding its BOPE film business, which has shown significant growth, contributing to the overall revenue increase [3]. - The gross margin for H1 2024 was 22.38%, a decrease of 2.01 percentage points year-on-year, but the company is actively working on vertical integration to enhance its competitive edge [4]. Financial Performance - The company reported a net profit margin of 11.04% for H1 2024, slightly down from the previous year [4]. - The operating cash flow for H1 2024 was 215 million CNY, reflecting a substantial year-on-year growth of 155% [4]. - Revenue projections for 2024-2026 are estimated at 3.720 billion CNY, 4.072 billion CNY, and 4.552 billion CNY, with corresponding net profits of 475 million CNY, 542 million CNY, and 613 million CNY, indicating a growth rate of 10.11%, 9.45%, and 11.80% respectively [4][7]. Market Position and Strategy - The company is recognized as a leader in the domestic plastic flexible packaging sector, continuously accumulating technological and management advantages [4]. - The establishment of a new office in Thailand aims to expand its Southeast Asian market presence, enhancing international competitiveness [3]. - The company is implementing a strategy of vertical integration to reduce production costs and improve product quality [4].