Yongjin Technology (603995)2024-09-06 07:35Group 1: Company Performance - In the first half of 2024, the company achieved a cold-rolled product output of 1.6458 million tons, an increase of 41.07% year-on-year [3] - Sales reached 1.6045 million tons, up 37.24% compared to the previous year [3] - The company reported a revenue of 20.297 billion yuan, reflecting a year-on-year increase of 17.08% [3] - Net profit attributable to shareholders was 428 million yuan, a significant increase of 100.38% year-on-year [3] - Total assets amounted to 14.291 billion yuan, up 3.19% year-on-year, while net assets attributable to shareholders increased by 13.57% to 5.362 billion yuan [3] Group 2: Industry Overview - The domestic stainless steel cold-rolled production in the first half of 2024 was 8.35 million tons, an increase of 149,000 tons or approximately 21.7% year-on-year [4] - The apparent consumption of stainless steel in the first half of 2024 was 16.69 million tons, up 147,000 tons, representing a growth of 9.6% [4] - The overall market remains oversupplied, which is expected to exert pressure on market prices [4] Group 3: Project Developments - The Gansu Yongjin project for producing 220,000 tons of precision stainless steel strip is under construction, with the first production line operational but not yet at full capacity [4] - The Vietnam project for producing 260,000 tons of precision stainless steel strip has entered trial production for the first line, while the second line is in the installation phase [5] - The company is also developing a titanium alloy project with a planned annual capacity of 60,000 tons, with the first production line expected to be operational by the end of October 2024 [5] Group 4: Financial and Strategic Outlook - The increase in profitability is attributed to growth in production capacity and sales, leading to a decrease in costs [6] - The company plans to focus on overseas project development and new material projects domestically, aligning with its "one body, two wings" development strategy [6] - The company is monitoring the legal situation of its actual controller, which is not expected to impact its operations or development plans [6]