Longhua Technology(300263) 中原证券·2024-09-24 09:30Investment Rating - The report maintains a rating of "Accumulate" for the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [1][14]. Core Insights - The company has shown stable revenue performance with a year-on-year increase of 3.03%, achieving a revenue of 1.22 billion yuan in the first half of 2024. However, the net profit attributable to shareholders decreased by 11.50% to 1.05 billion yuan [1]. - The new materials business, particularly in electronic materials, demonstrates strong growth potential, with a revenue increase of 61.89% year-on-year [1]. - The extraction and separation business is expected to become a new growth point, with the company’s subsidiary achieving a revenue of 1.25 billion yuan in the first half of 2024, reflecting a gross margin of 17.6% [2]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 1.22 billion yuan, a 3.03% increase year-on-year, while the net profit attributable to shareholders was 1.05 billion yuan, down 11.50% [1]. - The company’s gross margin for the first half of 2024 was 24.46%, an increase of 0.68 percentage points compared to the same period last year [1]. Business Segments - The energy-saving and environmental protection segment generated a revenue of 772 million yuan, up 8.79% year-on-year, with specific contributions from heat exchange equipment and water treatment [1]. - The electronic materials segment, including target materials and ultra-high temperature special materials, achieved a revenue of 273 million yuan, marking a significant growth of 61.89% [1]. Future Projections - Revenue projections for the company are estimated at 2.75 billion yuan for 2024, 2.95 billion yuan for 2025, and 3.18 billion yuan for 2026, with corresponding net profits of 175 million yuan, 184 million yuan, and 205 million yuan respectively [2][9]. - The expected earnings per share (EPS) are projected to be 0.19 yuan for 2024, 0.20 yuan for 2025, and 0.23 yuan for 2026, with a price-to-earnings (PE) ratio of 28.22, 26.84, and 24.10 respectively [2][9].