Sanmei(SH:603379)2024-07-10 07:01Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook for its stock performance relative to the market [4]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of between 334 million to 434 million yuan for H1 2024, representing a year-on-year growth of 157% to 234% [4]. - The strong performance in Q2 2024 is attributed to the peak season for refrigerants, with significant increases in both volume and price [4]. - The company is positioned to benefit from rising long-term contract prices in Q3 2024, ensuring continued performance stability and flexibility [4]. Summary by Sections Market Data - As of July 9, 2024, the closing price is 38.64 yuan, with a market capitalization of 23,589 million yuan and a P/B ratio of 3.9 [2]. Financial Performance - For H1 2024, the company anticipates a net profit of 334 to 434 million yuan, with a significant increase in Q2 2024 net profit expected to be between 179 to 279 million yuan, reflecting a year-on-year growth of 63% to 155% [4][5]. - Revenue projections for 2024 are set at 5,866 million yuan, with a year-on-year growth rate of 76% [5]. Business Operations - The company has seen strong demand for refrigerants, with production of household air conditioners increasing significantly in Q2 2024 [4]. - The company is expanding its product line to include high-end fluorochemicals and new environmentally friendly refrigerants, with several projects in progress [4]. Future Outlook - The company forecasts continued growth in net profit for the years 2024 to 2026, with estimates of 1,251 million yuan, 1,877 million yuan, and 2,439 million yuan respectively [5]. - The expected EPS for 2024 is 2.05 yuan, with a corresponding PE ratio of 19X [5].