Ningbo Solartron Technology (688299) Tai Ping Yang·2024-11-20 08:42Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [12]. Core Insights - The company, Changyang Technology, reported a revenue of 1.003 billion yuan for the first three quarters of 2024, reflecting an 8.23% year-on-year growth, but a significant decline of 75.26% in net profit attributable to shareholders [1]. - The company is experiencing short-term pressure on performance due to new project construction, while its solid-state battery composite electrolyte membrane technology is considered leading in the industry [1][4]. - Traditional business segments, such as reflective films and optical base films, are showing steady revenue growth, while new projects like solid-state and semi-solid membranes are still in the capacity ramp-up phase [2][3]. Financial Summary - For 2024, the company is projected to achieve revenues of 1.391 billion yuan, with a growth rate of 10.95%, and a net profit of 37 million yuan, reflecting a decline of 60.77% [5]. - The company’s revenue is expected to grow significantly in the following years, reaching 2.489 billion yuan by 2026, with a corresponding net profit of 286 million yuan [5]. - The report highlights a stable expense ratio, with total expenses for the first three quarters of 2024 amounting to 176 million yuan, representing a slight increase in expense ratio by 1.72 percentage points year-on-year [2]. Market Position and Future Outlook - The company maintains the largest market share in reflective films globally and is actively working on enhancing its product offerings to meet competitive demands [3]. - The solid-state battery composite electrolyte membrane is identified as a key growth area, with initial orders from leading industry clients [3]. - The company is also investing in the production of CPI films, aiming to break the foreign monopoly in this segment [3].