OXGF(SZ:300082) EBSCN·2024-08-06 10:01Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported significant improvement in Q2 performance, with a quarter-on-quarter revenue increase of 43% despite a year-on-year decline of 2% [2] - The company is focusing on the epoxy industry chain and is actively advancing into the new energy and medical materials markets, with ongoing capacity construction progressing smoothly [2] - The company is expected to see a rebound in performance with the upcoming release of new production capacity [2] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 1.836 billion yuan, a year-on-year decrease of 10%, and a net profit attributable to shareholders of -101 million yuan, an increase of 49 million yuan year-on-year [1] - In Q2 2024, the company achieved revenue of 1.079 billion yuan, a year-on-year decrease of 2% but a quarter-on-quarter increase of 43%, with a net profit of -22 million yuan, a year-on-year increase of 68 million yuan and a quarter-on-quarter increase of 56 million yuan [1][2] Market Dynamics - The demand for polyether sales increased significantly in Q2 due to the construction peak season, although the overall market demand remains insufficient [2] - The company operates in a competitive environment with excess capacity and price competition, which has pressured industry profitability [2] Capacity and Future Outlook - The company is the largest supplier of epoxy-ethane-derived green low-carbon fine chemical materials in China and is expanding its capacity in the new energy and medical materials sectors [2] - Key ongoing projects include a 150,000 tons/year epoxy ethane deep processing project and a 200,000 tons/year epoxy-derived green energy materials project, with progress rates of 19.67% and 100% respectively as of H1 2024 [2] Profit Forecast and Valuation - The report maintains profit forecasts for 2024-2025 and introduces a new forecast for 2026, expecting net profits of 13 million, 36 million, and 46 million yuan for 2024, 2025, and 2026 respectively, translating to EPS of 0.02, 0.05, and 0.07 yuan [2]