ToLand(SZ:300855) Guotai Junan Securities·2024-09-09 13:40Investment Rating - The report maintains a rating of "Accumulate" for the company [2][8]. Core Views - The company's performance in the first half of 2024 was slightly below expectations, with revenue of 731 million yuan, a year-on-year increase of 6.07%, and a net profit attributable to shareholders of 191 million yuan, up 7.11% year-on-year [3][8]. - The demand in the petrochemical and power sectors is strong, leading to rapid revenue growth in the company's deformed high-temperature alloys, which achieved 277 million yuan in revenue, a year-on-year increase of 30.79% [8]. - The company is actively expanding into overseas markets, and the completion of two subsidiaries in Shenyang is expected to further enhance growth potential [8]. Financial Summary - The company has adjusted its net profit forecasts for 2024 and 2025 to 403 million yuan and 497 million yuan, respectively, down from previous estimates of 465 million yuan and 590 million yuan [8][9]. - The target price has been revised down to 27.54 yuan from 39.60 yuan, based on a valuation of 27 times the expected earnings per share (EPS) for 2024 [8][10]. - The company's gross profit margin and net profit margin for the first half of 2024 were 38.34% and 26.16%, respectively, both showing slight year-on-year increases [8]. Market Data - The company's stock price has fluctuated between 18.50 yuan and 35.14 yuan over the past 52 weeks, with a current price of 22.16 yuan [4]. - The total market capitalization is approximately 8.76 billion yuan, with a total share capital of 395 million shares [4]. Future Outlook - The company is expected to see a gradual realization of revenue from its new subsidiaries, with projected annual sales of 231 million yuan from one of the completed projects [8]. - The financial forecasts indicate a steady increase in revenue and net profit over the next few years, with expected revenues of 1.48 billion yuan in 2024 and 1.91 billion yuan in 2026 [9].