Luxi Chemical(SZ:000830) Shanxi Securities·2024-07-07 02:00Investment Rating - The report maintains a "Buy-B" rating for Lu Xi Chemical (000830.SZ) [1] Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.1-1.2 billion yuan for the first half of 2024, representing a year-on-year growth of 467.04%-518.59% [1] - The second quarter of 2024 is projected to have a net profit of 532-632 million yuan, with a quarter-on-quarter change of -6.34% to +11.27% [1] - The company has successfully adjusted to market changes, leading to significant year-on-year performance improvements [1] Financial Performance Summary - Revenue projections for 2024-2026 are 30.2 billion, 31.9 billion, and 32.1 billion yuan, respectively, with net profits of 1.943 billion, 2.232 billion, and 2.477 billion yuan [2] - Earnings per share (EPS) are expected to be 1.01, 1.16, and 1.29 yuan for 2024, 2025, and 2026, respectively [2] - The company’s price-to-earnings (P/E) ratios are projected to be 11.4, 10.0, and 9.0 for the same years [2] Market and Product Insights - The company has seen a significant increase in the prices of some products, while the procurement prices of raw materials have decreased, contributing to improved gross margins [1] - The report highlights the successful launch of new projects, including the expansion of methanol and DMF production, which are expected to enhance future performance [1] Valuation Metrics - The report indicates a return on equity (ROE) of 3.22% for the latest period, with projections of 10.4%, 11.0%, and 11.1% for the next three years [3] - The company’s net profit margin is expected to improve from 3.2% in 2023 to 7.7% by 2026 [3] - The projected gross margin for 2024 is 17.1%, with slight increases expected in subsequent years [3]