YUSSEN GROUP(SZ:002986) Minsheng Securities·2024-08-21 01:30Investment Rating - The report maintains a "Recommend" rating for the company [4] Core Views - The company's Q2 2024 net profit attributable to parent company increased by 77% QoQ, driven by stable profitability in chemical and new materials products and a significant improvement in energy product profitability [2] - The company's revenue for H1 2024 reached 3.729 billion yuan, up 26.14% YoY, while net profit attributable to parent company was 202 million yuan, down 6.96% YoY [2] - The company's energy products achieved a revenue of 1.547 billion yuan in H1 2024, with a gross margin of 30.15%, up 15.39 percentage points YoY [2] - The company is advancing multiple key projects, including the expansion of the sec-butyl acetate production and the optimization of the butanone production process [2] - The company's MTBE production capacity is expected to exceed 1 million tons/year after the completion of the light hydrocarbon phase II project, further consolidating its market position in South China [2] Financial Forecasts - The company's revenue is expected to grow from 6.609 billion yuan in 2023 to 13.813 billion yuan in 2026, with a CAGR of 24.23% [5] - Net profit attributable to parent company is forecasted to increase from 454 million yuan in 2023 to 809 million yuan in 2026 [5] - EPS is projected to rise from 1.18 yuan in 2023 to 2.11 yuan in 2026 [5] - The company's PE ratio is expected to decrease from 9x in 2024 to 5x in 2026, indicating potential undervaluation [5] Key Projects and Developments - The sec-butyl acetate expansion project has been successfully put into operation, and the butanone production process optimization is progressing rapidly [2] - The light hydrocarbon phase II project is under construction, which will significantly increase the company's MTBE production capacity [2] - The company's 300,000 tons/year isooctane production facility is the largest in South China, showcasing its advanced production technology [2] Industry and Market Position - The company is a leading player in the C4 deep processing industry, with comprehensive utilization capabilities for C4 components such as n-butene, isobutene, n-butane, and isobutane [2] - The company has a strong market position in South China, with a high market share in MTBE production [2] - The company's strategic layout in new materials and functional chemicals is expected to drive future growth [2]