Core Insights - The company's Q2 performance met expectations with H1 revenue of 650 million, a year-on-year increase of 1.1%, and a net profit of 120 million, also up 1.1% year-on-year [1] - The company reduced shipments of low-priced first-generation products in Q2, indicating a potential increase in single-wall product volume [1] Financial Performance - Q2 revenue was 320 million, a decrease of 6.1% year-on-year and 4.7% quarter-on-quarter, with a net profit of 60 million, down 5.1% quarter-on-quarter but up 0.8% year-on-year [1] - The gross margin for Q2 was 37%, showing a quarter-on-quarter decrease of 1.8 percentage points but an increase of 3.8 percentage points year-on-year [1] - Operating cash flow turned positive in Q2, with a net cash flow of 80 million, a significant increase of 741% quarter-on-quarter [3] Product and Market Development - The company expects total shipments of first, second, and third-generation products to remain stable at 80,000 to 90,000 tons for the year, with a notable shift in product mix [1] - Single-wall carbon tube shipments are projected to reach 7,000 tons in 2025, with significant growth expected in 2026 [1] - The company is focusing on high-value applications for single-wall carbon tubes in fields such as solid-state batteries, sodium batteries, robotics, and electronic devices, with potential market size reaching billions [2] Profitability and Cost Structure - The average product price increased to 20,000 per ton in Q2, a 3% quarter-on-quarter rise, with a non-GAAP profit per ton of nearly 3,000, up over 10% [2] - The company anticipates maintaining a profit of around 3,000 per ton for its first, second, and third-generation products in the second half of the year, while single-wall products could achieve profits of 10,000 per ton [2] Capital Expenditure and Inventory - Capital expenditure for H1 was 140 million, down 48.2% year-on-year, with Q2 capital expenditure at 80 million, a decrease of 24.7% year-on-year [3] - Inventory at the end of H1 was 220 million, an increase of 8.5% from the beginning of the year [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q2 performance met expectations, with a revenue of 650 million yuan and a net profit of 120 million yuan, both showing a year-on-year increase of 1.1% [8] - The company is reducing the shipment of low-priced first-generation products, with significant growth expected in single-wall carbon tubes [8] - The average selling price of products increased by 3% in Q2, with a projected single-ton profit of approximately 3,000 yuan, reflecting a 10%+ increase [8] - The single-wall carbon tubes are anticipated to be applied in new fields such as solid-state batteries, sodium batteries, robotics, and electronic devices, with a potential market size reaching billions of dollars in the next five years [8] - The company has turned positive in operating cash flow, with a significant increase in cash flow in Q2 [8] - The profit forecast for 2025-2027 has been adjusted downwards, but the company maintains a strong growth outlook with a projected net profit growth of 40%/61%/34% for these years [8] Financial Summary - Total revenue for 2023 is projected at 1,404 million yuan, with a year-on-year decrease of 23.75% [1] - The net profit attributable to the parent company for 2023 is estimated at 297.16 million yuan, reflecting a year-on-year decrease of 29.96% [1] - The earnings per share (EPS) for 2023 is expected to be 0.81 yuan [1] - The company’s total assets are projected to reach 5,139 million yuan by 2024, with total liabilities of 2,175 million yuan [9] - The operating cash flow for 2024 is estimated at 276 million yuan [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in 2024 is in line with expectations, with a revenue of 1.448 billion yuan, a year-on-year increase of 3.13%, and a net profit attributable to shareholders of 250.2 million yuan, a year-on-year decrease of 15.80% [8] - The company is expected to see significant growth in single-wall carbon tube production in 2025, with an estimated sales volume of 12 million tons, a year-on-year increase of 40% [8] - The report anticipates a recovery in profit margins in the second half of 2025, driven by the single-wall product line, which is expected to achieve a profit of 10,000 yuan per ton [8] Financial Forecasts - Total revenue projections for the company are as follows: 2023A: 1.404 billion yuan, 2024A: 1.448 billion yuan, 2025E: 2.174 billion yuan, 2026E: 2.902 billion yuan, 2027E: 3.867 billion yuan [1] - Net profit attributable to shareholders is forecasted to be: 2023A: 297.16 million yuan, 2024A: 250.20 million yuan, 2025E: 450.04 million yuan, 2026E: 652.68 million yuan, 2027E: 912.76 million yuan [1] - The earnings per share (EPS) estimates are: 2023A: 0.86 yuan, 2024A: 0.73 yuan, 2025E: 1.31 yuan, 2026E: 1.89 yuan, 2027E: 2.65 yuan [1] Market Data - The closing price of the company's stock is 40.70 yuan, with a market capitalization of approximately 14.03 billion yuan [5] - The price-to-earnings (P/E) ratio is projected to be 56.08 for 2024A, decreasing to 15.37 by 2027E [1] Operational Insights - The company has seen a significant increase in carbon tube slurry shipment volume, reaching 85,000 tons in 2024, a year-on-year increase of 56% [8] - The gross margin for carbon tube slurry is expected to stabilize around 35% in 2024, with an average price of 17,000 yuan per ton [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in 2024 is in line with expectations, with a revenue of 1.448 billion yuan, a year-on-year increase of 3.13%, and a net profit attributable to shareholders of 250.2 million yuan, a year-on-year decrease of 15.80% [8] - The company is expected to see significant growth in single-wall carbon tube production in 2025, with an estimated output of 10-11 million tons of carbon tube slurry, representing a 20% increase [8] - The gross profit margin for carbon tube slurry is projected to be stable, with a recovery in single-ton profitability anticipated in the second half of 2025 [8] Financial Forecasts - Total revenue forecast for 2024 is 1.448 billion yuan, with a projected increase to 2.174 billion yuan in 2025, and further growth to 2.902 billion yuan in 2026 [9] - The net profit attributable to shareholders is expected to be 250.2 million yuan in 2024, increasing to 450.04 million yuan in 2025, and reaching 652.68 million yuan in 2026 [9] - The earnings per share (EPS) is forecasted to be 0.73 yuan in 2024, increasing to 1.31 yuan in 2025, and further to 1.89 yuan in 2026 [9] Market Data - The closing price of the company's stock is 40.70 yuan, with a market capitalization of approximately 14.03 billion yuan [5] - The price-to-earnings (P/E) ratio is projected to be 56.08 for 2024, decreasing to 31.18 in 2025, and further to 21.50 in 2026 [9] Operational Insights - The company has seen a significant increase in carbon tube slurry shipment volume, with a total of 85,000 tons shipped in 2024, a year-on-year increase of 56% [8] - The company’s operating cash flow for 2024 is projected to be 276 million yuan, with a decrease in capital expenditure expected [9]