ENERGY TECHNOLOGY(SZ:002812) Huachuang Securities·2024-09-21 15:08Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 31.11 CNY, compared to the current price of 24.60 CNY [2]. Core Views - The company reported a revenue of 4.783 billion CNY for H1 2024, a year-on-year decrease of 14.10%, and a net profit attributable to shareholders of 291 million CNY, down 79.28% year-on-year [2]. - Despite the downward pressure on profits due to falling separator prices, the global demand for new energy vehicles presents significant growth potential, and the company is actively expanding its overseas production capacity and customer base [2]. - The company has successfully developed high porosity and high-strength base membranes, which enhance ion conductivity and support ultra-fast charging capabilities for batteries [2]. - The company is in the process of establishing production lines for solid-state battery materials, with its subsidiary completing small-scale production capacity for high-purity lithium sulfide [2]. Financial Summary - The company's total revenue for 2023 is projected at 12.042 billion CNY, with a year-on-year decline of 4.4%. For 2024, the expected revenue is 10.583 billion CNY, a decrease of 12.1% [3]. - The net profit attributable to shareholders is forecasted to be 613 million CNY in 2024, reflecting a significant year-on-year decline of 75.7% [3]. - The earnings per share (EPS) is expected to be 0.63 CNY in 2024, with a price-to-earnings (P/E) ratio of 39 [3]. Production and Market Expansion - The company is actively expanding its overseas production capacity, with its Hungarian facility in the customer verification stage and a facility in the U.S. under construction [2]. - The company has established relationships with several leading global lithium battery customers, including LGES, Panasonic, and ACC [2]. Future Profit Projections - The projected net profits for the company from 2024 to 2026 are 613 million CNY, 1.086 billion CNY, and 1.739 billion CNY, respectively, with corresponding P/E ratios of 39, 22, and 14 [2].