Cathay Biotech (SH:688065)2024-08-19 06:49Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company has shown a significant recovery in Q2 performance, with a quarter-on-quarter revenue increase of 11% and a year-on-year increase of 45%, reaching 760 million yuan [7] - The demand for long-chain dicarboxylic acids has rebounded, and the company is actively expanding its market share in the dodecanedioic acid segment [8] - The company is strategically collaborating with industry partners to build a bio-based materials ecosystem, enhancing its long-term growth prospects [8] Summary by Sections Market Data - Closing price: 35.99 yuan - Year-to-date high/low: 63.98/35.61 yuan - Price-to-book ratio: 1.9 - Dividend yield: 0.53% - Circulating A-share market value: 20,996 million yuan [2] Financial Performance - For the first half of 2024, the company achieved revenue of 1.444 billion yuan, a year-on-year increase of 40%, and a net profit of 247 million yuan, a year-on-year increase of 2% [9] - The company’s gross margin for Q2 was 33.51%, with a year-on-year increase of 7.91 percentage points [7] Revenue Breakdown - Revenue from long-chain dicarboxylic acids (including dodecanedioic acid) was 1.314 billion yuan, with a gross margin of 39.32% [8] - Domestic revenue reached 960 million yuan, a year-on-year increase of 43%, while overseas revenue was 481 million yuan, a year-on-year increase of 35% [8] Future Projections - The company forecasts net profits of 525 million yuan, 709 million yuan, and 973 million yuan for 2024, 2025, and 2026, respectively [9] - The current market capitalization corresponds to price-to-earnings ratios of 40, 30, and 22 for the years 2024, 2025, and 2026 [8]