zhenhua chemical(603067) 国海证券·2024-08-16 02:00Investment Rating - The report maintains a "Buy" rating for Zhenhua Chemical (603067) [2] Core Views - Zhenhua Chemical achieved record-high performance in Q2 2024, driven by both volume and price increases in its main products [2] - The company's revenue for H1 2024 reached 1.987 billion yuan, up 16.57% YoY, with net profit attributable to shareholders of 241 million yuan, up 24.54% YoY [2] - Q2 2024 revenue was 1.04 billion yuan, up 21.59% YoY and 9.69% QoQ, with net profit of 155 million yuan, up 69.83% YoY and 81.83% QoQ [2] - The chromium salt industry is entering a boom cycle, with global demand expected to grow at an annual rate of over 5% by 2026, driven by the metal chromium sector [5] Financial Performance - H1 2024 operating cash flow was 225 million yuan, with gross profit margin of 27.44%, up 1.77 pct YoY and 3.74 pct QoQ [2] - Net profit margin in Q2 2024 was 15.02%, up 4.03 pct YoY and 5.96 pct QoQ [2] - ROE for H1 2024 was 8.30%, up 0.86 pct YoY [2] Product Performance - Total chromium salt product shipments (converted to sodium dichromate) reached 133,000 tons in H1 2024, up 21% YoY [2] - Dichromate sales volume was 14,300 tons, up 58.75% YoY, while chromium oxide sales were 53,300 tons, up 9.70% YoY [2] - Alloy additive product shipments exceeded 8,200 tons in H1 2024, benefiting from increased downstream demand [2] Market Outlook - The chromium salt industry is shifting from traditional applications like leather tanning to high-growth sectors such as aerospace and new energy [5] - Zhenhua Chemical is expected to benefit from its market leadership and integrated industrial chain advantages [5] Valuation and Forecast - The company is projected to achieve revenues of 4.386 billion yuan, 4.629 billion yuan, and 5.143 billion yuan in 2024, 2025, and 2026, respectively [5] - Net profit is forecasted to be 528 million yuan, 585 million yuan, and 678 million yuan for 2024, 2025, and 2026, with corresponding P/E ratios of 12x, 11x, and 9x [5]