TGCF(SZ:301217) Huachuang Securities·2024-09-19 09:39Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [2][15]. Core Views - The company's profitability has shown signs of recovery, with steady growth in high-frequency and high-speed copper foil shipments. However, due to intensified industry competition and a significant decline in processing fees, the company's profitability remains at a low point [2][3]. - The second quarter of 2024 saw a revenue increase of 31.0% year-on-year, but the net profit attributable to the parent company was a loss of 0.31 billion, reflecting a year-on-year decline of 1483.5% [1][2]. Financial Performance Summary - In the first half of 2024, the company achieved a revenue of 2.07 billion, up 18.1% year-on-year, but reported a net loss of 0.059 billion, down 308.5% year-on-year [1]. - The gross margin turned positive in Q2 2024, reaching 0.7%, while the net margin was -2.6%, showing improvements compared to previous quarters [1]. - The company’s copper foil production volume increased by 10.89% year-on-year to 24,000 tons, with revenue from lithium battery copper foil accounting for 30.7% of total revenue [1][2]. Future Earnings Forecast - The forecast for net profit attributable to the parent company has been adjusted to -0.11 billion for 2024, 0.90 billion for 2025, and 1.93 billion for 2026, reflecting a downward revision due to impairment factors [2][3]. - Revenue projections for the upcoming years are set at 4.299 billion for 2024, 4.791 billion for 2025, and 5.588 billion for 2026, with expected growth rates of 13.6%, 11.4%, and 16.7% respectively [3][6].