ZMC(SH:600216) EBSCN·2024-08-24 02:07Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The vitamin industry is experiencing a recovery, with significant growth in Q2 2024 performance compared to the previous quarter [2][4] - The company achieved a revenue of 4.4 billion yuan in H1 2024, a year-on-year increase of 12%, and a net profit of 315 million yuan, up 16% year-on-year [3][4] - The report highlights the positive impact of BASF's supply disruptions on vitamin prices, leading to a substantial increase in market prices for vitamins A and E [4] - The company is actively investing in R&D, with H1 2024 R&D expenses amounting to 380 million yuan, indicating a commitment to innovation and product development [4][5] Summary by Sections Revenue Performance - In Q2 2024, the company reported a revenue of 2.16 billion yuan, a 12% increase year-on-year, but a 4% decrease quarter-on-quarter [3] - The net profit for Q2 2024 was 210 million yuan, reflecting a 30% increase year-on-year and an 88% increase quarter-on-quarter [3] Market Data - The total market capitalization of the company is 14.117 billion yuan, with a total share capital of 9.62 billion shares [2] - The stock price has fluctuated between 7.86 yuan and 17.50 yuan over the past year [2] Financial Forecasts - The report projects net profits for 2024, 2025, and 2026 to be 970 million yuan, 1.008 billion yuan, and 1.058 billion yuan respectively, with significant upward revisions [5] - The expected EPS for the same years is 1.01 yuan, 1.05 yuan, and 1.10 yuan [5] Industry Insights - The vitamin market is expected to see continued price increases due to supply constraints and recovering demand, particularly following BASF's supply issues [4] - The report emphasizes the company's proactive approach in expanding its pharmaceutical business through innovative product development and regulatory approvals [4][5]