Huafon Aluminium(601702) 申万宏源·2024-10-10 00:46Investment Rating - Maintain Buy rating [4] Core Views - The company's Q3 2024 performance forecast meets expectations, with net profit expected to be between 820 million to 920 million yuan, a year-on-year increase of 24-39% [4] - The growth is driven by product structure optimization, strong domestic and overseas customer development, and cost reduction and efficiency improvement [4] - The company is expected to benefit from the increasing demand in the air conditioning, data center, and energy storage liquid cooling markets [4] - The company is expanding its production capacity, with plans to build a second phase in Chongqing, adding 150,000 tons of capacity for new energy vehicle use [4] Financial Summary - Revenue for 2024E is projected to be 11,483 million yuan, with a year-on-year growth rate of 23.6% [5] - Net profit attributable to the parent company for 2024E is expected to be 1,250 million yuan, with a year-on-year growth rate of 39.0% [5] - The company's gross margin is expected to increase from 15.9% in 2023 to 17.8% in 2024E [5] - ROE is projected to be 21.9% in 2024E, up from 19.9% in 2023 [5] Market and Industry Analysis - The company is a leader in automotive thermal management aluminum materials, with a stable industry structure and leading profitability [4] - The company is actively developing new materials for energy storage, 5G base stations, and data centers, with significant future market potential [4] - The company's overseas market development is progressing steadily, with new projects and customers in Asia and Eastern Europe [4] Production and Capacity - The company currently has a production capacity of 500,000 tons and plans to expand with a new 150,000-ton facility in Chongqing [4] - The Chongqing base offers lower energy costs and higher yield rates compared to the Shanghai base, with potential for further cost reductions [4]