Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [8]. Core Views - The company adheres to a major client strategy, achieving significant growth in its frame business, with a revenue increase of 41.4% year-on-year in H1 2024 [2][3]. - The company is a leading player in the photovoltaic frame sector, with a market share of approximately 9.5% and a projected demand of 2.43 million tons for photovoltaic frames in 2023 [2]. - The company has four production bases in China and is expanding its capacity, with plans to build an additional 180,000 tons in Vietnam, bringing total capacity to 690,000 tons [2]. - The company's top five clients account for 86% of its revenue, indicating a low risk of bad debts [2]. - The frame business generated revenue of 3.47 billion yuan in H1 2024, reflecting a year-on-year growth of 46.5% [2]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 3.53 billion yuan, with a net profit of 180 million yuan, marking a 3.9% increase year-on-year [2]. - The second quarter saw a revenue of 2.05 billion yuan, up 59.6% year-on-year, and a net profit of 110 million yuan, up 1.7% year-on-year [2]. - The company maintains a low expense ratio, with total selling, administrative, financial, and R&D expenses at 3.6% in H1 2024, an increase of 0.6 percentage points year-on-year [2]. Future Projections - The company is expected to achieve net profits of 392 million yuan, 426 million yuan, and 494 million yuan for the years 2024, 2025, and 2026, respectively [3]. - Revenue projections for the next three years are 8.43 billion yuan, 10.59 billion yuan, and 12.77 billion yuan, with growth rates of 56.33%, 25.62%, and 20.60% [3].
永臻股份：坚持践行大客户战略，边框业务实现高增长