Layn(SZ:002166) Tianfeng Securities·2024-07-11 11:00Investment Rating - The investment rating for the company is "Buy" with a target price indicating an expected return of over 20% within the next six months [4][17]. Core Views - The company is expected to see significant growth in net profit for the first half of 2024, with estimates ranging from approximately 54.29 million to 65.15 million yuan, representing a year-on-year increase of 50% to 80% [7][24]. - The plant extraction industry is experiencing positive trends, with strong market demand, particularly in the natural sweetener sector, where the company is focusing on products like monk fruit and stevia extracts [7]. - The company has secured a five-year cooperation agreement with a major client, aiming for cumulative revenue of 840 million USD, which is expected to enhance its growth prospects [7]. Financial Data and Valuation - Revenue is projected to grow from 1,400.74 million yuan in 2022 to 2,915.39 million yuan by 2026, with a compound annual growth rate (CAGR) of approximately 21% [3][11]. - The company's net profit attributable to the parent company is expected to increase from 178.75 million yuan in 2022 to 345.73 million yuan in 2026, reflecting a CAGR of around 31% [3][11]. - The earnings per share (EPS) is forecasted to rise from 0.24 yuan in 2022 to 0.47 yuan in 2026 [3][11]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 29.31 in 2022 to 15.15 in 2026, indicating improving valuation metrics over time [3][11]. Profitability Forecast - The company anticipates a substantial increase in revenue and net profit for the years 2024 to 2026, with expected revenues of 19.12 billion yuan, 24.09 billion yuan, and 29.15 billion yuan respectively, and net profits of 1.93 billion yuan, 2.63 billion yuan, and 3.46 billion yuan [7][11].