CAPCHEM(SZ:300037)2024-08-22 05:38Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company's performance in the first half of 2024 met expectations, with revenue of 3.582 billion yuan, a year-on-year increase of 4.35%, and a net profit of 416 million yuan, a year-on-year decrease of 19.54% [1] - The domestic electrolyte market is gradually bottoming out, with the Polish factory ramping up production, contributing to a significant increase in output [1] - The depreciation and amortization pressure from the Haide Fluor project is increasing, but the long-term optimization logic of the fluorochemical sector remains unchanged [1] Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 2.067 billion yuan, a year-on-year increase of 15.75% and a quarter-on-quarter increase of 36.41% [1] - The gross margin for the electrolyte business in Q2 2024 was 28.37%, down 2.04 percentage points year-on-year but up 1.16 percentage points quarter-on-quarter [1] - The company’s net profit margin increased by 1.6 percentage points quarter-on-quarter to 12.36% [1] Market Dynamics - The average price of domestic electrolytes in Q2 2024 was 21,200 yuan per ton, down 40.5% year-on-year but up 0.9% quarter-on-quarter [1] - The company’s electrolyte production capacity is rapidly increasing, with a production volume of 157,000 tons in the first half of 2024, a year-on-year increase of 86.8% [1] Business Outlook - The company expects to maintain its profit forecasts for 2024-2026, projecting net profits of 1.198 billion yuan, 1.710 billion yuan, and 2.425 billion yuan respectively [1] - The PE ratios for the projected years are 20X for 2024, 14X for 2025, and 10X for 2026 [1]