Changhong Polymer(SH:605008) Huaxin Securities·2024-06-29 10:02Investment Rating - The report maintains a "Buy" rating for Changhong High-Tech (605008.SH) [2][4] Core Views - Changhong High-Tech is a leading enterprise in the thermoplastic elastomer (TPES) sector, with a current annual production capacity of 195,000 tons, ranking third in the country [2] - The company's revenue for Q1 2024 reached 771 million yuan, a year-on-year increase of 105.36%, with a net profit attributable to shareholders of 42 million yuan, up 88.42% year-on-year [2] - The growth in revenue is attributed to the expansion of product categories and the temporary shutdown of subsidiaries for technical upgrades [2] - The company is actively expanding its product applications, including shoes, toys, and cables, and is the second domestic company with industrialization capabilities for SEPS products [2] Summary by Sections Sales and Financial Performance - The report forecasts revenues of 2.3 billion yuan in 2024, 2.83 billion yuan in 2025, and 3.54 billion yuan in 2026, with corresponding EPS of 0.33, 0.52, and 0.79 yuan [4][5] - The projected growth rates for revenue are 62.5% in 2024, 23.1% in 2025, and 24.9% in 2026 [5][6] Product Development and Expansion - The company is investing approximately 11.5 billion yuan in a new acrylic acid industrial park project in Guangdong, which will enhance its product structure and economic benefits [2] - The project will be developed in two phases, with the first phase involving an investment of 600 million yuan to establish production lines for 50,000 tons/year of acrylic acid and 50,000 tons/year of acrylic ester [2] Market Position and Competitive Advantage - TPES products are characterized by being non-toxic, recyclable, and serve as effective substitutes for traditional rubber products [2] - The company has developed a comprehensive product coverage in the PBAR/PBT, black masterbatch/carbon black, and calcium carbonate industries [2]