ZJJH(SH:600160) Huaan Securities·2024-08-23 12:10Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced significant growth in its half-year performance, with the refrigerant market cycle expected to continue [1] - The company reported a total revenue of 12.08 billion yuan in 1H24, representing a year-on-year increase of 19.65%, and a net profit attributable to shareholders of 834 million yuan, up 70.31% year-on-year [1] - The growth in revenue and profit is primarily driven by the increase in both price and volume of refrigerants, with average selling prices rising by 22% year-on-year in 1H24 [1][3] - The company is investing 2.19 billion yuan in four major projects to enhance its high-end fluorochemical product offerings, which are expected to contribute significantly to future profits [2] Summary by Sections Financial Performance - In 1H24, the company achieved a net profit of 834 million yuan, a 70.31% increase year-on-year, and a net profit of 524 million yuan in 2Q24, up 55.35% year-on-year and 68.83% quarter-on-quarter [1] - The average selling price of refrigerants in 1H24 was 24,300 yuan per ton, a 22% increase year-on-year, with sales volume reaching 161,400 tons, a 12% increase year-on-year [1] - The company expects net profits for 2024-2026 to be 2.36 billion, 3.37 billion, and 4.22 billion yuan respectively, with year-on-year growth rates of 150.0%, 42.7%, and 25.2% [3] Market Outlook - The company is well-positioned to benefit from the ongoing recovery in the refrigerant market, particularly with the price increases of its core products [1][3] - The company holds a significant market share in the production quotas for HFCs, which are expected to see price increases due to supply constraints and steady demand [1][3] Strategic Initiatives - The company plans to invest in high-performance fluorinated materials to enhance its product structure and profitability, with several projects expected to be completed by 2025 [2] - The projects include high-quality meltable fluororesin, high-end fluoropolymer, and high-performance barrier materials, which are projected to add substantial annual net profits [2]