BBJX(BJ:430489)2024-07-21 06:30Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook based on future project developments and market opportunities [3][45]. Core Insights - The company, Jiasian Co., Ltd., has diversified its business around PVC eco-friendly stabilizers and additives, expanding into various sectors including biomedicine, electronic materials, surfactants, and biodegradable materials [1][10]. - Despite facing short-term pressure due to weak demand in the PVC industry, the company has shown resilience with a revenue increase of 18.43% year-on-year in Q1 2024, although net profit slightly declined by 0.07% [1][53]. - The company has implemented cost-reduction strategies, such as producing phenylacetone in-house, which has lowered production costs by approximately 2,500 CNY per ton [1][36]. Company Business Structure - Jiasian Co., Ltd. was established in 2006 and has developed a comprehensive portfolio that includes PVC eco-friendly additives, biomedicine, electronic materials intermediates, surfactants, water-based lubricants, diacid esters, and biodegradable materials additives [1][10]. - The company’s main revenue source remains PVC eco-friendly additives, with recent acquisitions and projects aimed at expanding its product offerings and market reach [2][10]. Financial Analysis - In Q1 2024, the company reported revenues of 146.74 million CNY, with a projected revenue growth of 13.61% in 2024, reaching 609 million CNY [20][45]. - The forecasted net profits for 2024-2026 are 50 million CNY, 64 million CNY, and 82 million CNY, representing significant growth rates of 144.34%, 29.03%, and 26.97% respectively [3][45]. Project and Industry Analysis - The company is actively expanding its production capabilities, with several projects set to come online in 2024, including a 10,000-ton diacid ester project and a 15,000-ton biodegradable materials additive project [2][56]. - The biomedicine and electronic materials sector is also a focus, with a project aimed at producing 700 tons of electronic materials intermediates, which are critical for the semiconductor industry [2][39]. - The surfactant project, with an annual capacity of 42,600 tons, is expected to begin production in the second half of 2024, targeting various applications in the rubber and coatings industries [2][39]. Profitability Forecast - The company anticipates a steady increase in revenue and profitability, with projected revenues of 793 million CNY and 1,016 million CNY for 2025 and 2026 respectively, alongside improving profit margins [20][45]. - The company’s gross margin is expected to stabilize around 15.76% to 15.85% over the forecast period, reflecting effective cost management and operational efficiencies [20][45].