COSMOS(300856) 长城证券·2024-08-21 10:36Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 27.29 CNY as of August 19, 2024 [1][4] Core Views - The company's revenue in the first half of 2024 reached 1.405 billion CNY, a year-on-year increase of 18.01%, with net profit attributable to shareholders of 421 million CNY, up 20.24% year-on-year [1] - The company's new product capacity release has driven steady growth, with a gross profit margin of 47.84% in the first half of 2024, and a net profit margin of 29.99%, up 0.54 percentage points year-on-year [2] - The company is a global leader in chemical sunscreen agents and synthetic fragrances, with strong international competitiveness and continuous capacity expansion [4] Financial Performance - Revenue is expected to grow from 2.977 billion CNY in 2024E to 4.570 billion CNY in 2026E, with a compound annual growth rate (CAGR) of 22.2% [1] - Net profit attributable to shareholders is projected to increase from 894 million CNY in 2024E to 1.365 billion CNY in 2026E, with a CAGR of 21.1% [1] - ROE is forecasted to remain above 26% from 2024E to 2026E, indicating strong profitability [1] Market Position and Growth Drivers - The company has 196 authorized patents, including 54 invention patents, and has developed core technologies such as decolorization-film distillation purification and green oxidation reaction [2] - The company is expanding its international presence with a 10,000-ton sunscreen product project in Malaysia and new product lines like P-S and amino acid surfactants [2] - The domestic fragrance and flavor industry is in a rapid development phase, supported by government policies encouraging innovation and green development [4] Valuation Metrics - The company's P/E ratio is expected to decrease from 10.4X in 2024E to 6.8X in 2026E, indicating potential undervaluation [1] - EPS is projected to grow from 2.63 CNY in 2024E to 4.02 CNY in 2026E, reflecting strong earnings growth [1] - The company's P/B ratio is forecasted to decline from 2.9X in 2024E to 1.8X in 2026E, suggesting improving asset efficiency [1]