Pylon Technologies(SH:688063) Haitong Securities·2024-10-14 06:41Investment Rating - The investment rating for the company is "Outperform the Market" [2][14]. Core Insights - The company's performance and profitability improved sequentially in Q2 2024, with revenue of 4.74 billion yuan, a quarter-on-quarter increase of 22.86%, and a year-on-year decrease of 33.86%. The net profit attributable to the parent company was 158.76 million yuan, a quarter-on-quarter increase of 296.86% and a year-on-year decrease of 93.13% [5][6]. - The inventory levels in Europe have returned to reasonable levels, and it is expected that shipments will continue to increase in the second half of the year as overseas market conditions improve [5][6]. - The company is actively expanding its diversified product system, particularly in commercial energy storage, which has seen significant growth in overseas markets [6][8]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 859 million yuan, a year-on-year decrease of 66.39%, and a net profit of 19.87 million yuan, a year-on-year decrease of 97.13% [5][7]. - The company's gross margin for Q2 2024 was 38.51%, a quarter-on-quarter increase of 2.75 percentage points and a year-on-year increase of 6.47 percentage points [5][6]. Market Outlook - The company expects a gradual recovery in shipments in the overseas market during Q3 and Q4 2024, with production capacity utilization rates improving as inventory levels stabilize [5][6]. - The company is also expanding its presence in domestic markets, particularly in commercial energy storage, and has launched new products based on 280Ah and 314Ah cells [6][8]. Profit Forecast and Valuation - The forecasted net profits for the company from 2024 to 2026 are 138 million yuan, 302 million yuan, and 523 million yuan, respectively [7][8]. - The company is assigned a valuation of 105-110 times PE for 2024, corresponding to a reasonable value range of 59.16-61.97 yuan [6][10].