CIMC ENRIC(03899) 交银国际证券·2024-08-27 09:51Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The chemical sector shows signs of recovery, while clean energy growth exceeds expectations. The company's core profit for the first half of 2024 decreased by 3.5% year-on-year to 600 million RMB. The clean energy segment continued its strong growth from Q1, with overseas revenue increasing by 72% year-on-year, driven by offshore products. Hydrogen energy product revenue rose by 74% to 170 million RMB. However, the chemical and liquid food segments underperformed, with the chemical sector's gross profit declining by 63% due to low industry demand [1][2] - The second half of 2024 is expected to see a slight rebound in the chemical sector, with continued strong growth in clean energy. Despite weak performance in the first half, the likelihood of a bottoming out is high, especially in the chemical sector, which saw a 32% quarter-on-quarter revenue increase in Q2. New orders for standard containers have also rebounded significantly [1][2] - The company expects the liquid food segment to achieve over 10% revenue growth and over 20% gross profit growth year-on-year in 2024. The total gross profit for the chemical and liquid food segments in the second half of the year is estimated to be 810 million RMB, with a year-on-year decline narrowing to 4% [1][2] Financial Summary - The company’s revenue is projected to grow from 19,602 million RMB in 2022 to 37,267 million RMB in 2026, with a compound annual growth rate (CAGR) of 11% from 2024 to 2026. Net profit is expected to increase from 1,055 million RMB in 2022 to 1,604 million RMB in 2026, with a recovery to double-digit growth in 2025 [5][11] - The estimated earnings per share (EPS) for 2024 is 0.64 RMB, with a projected P/E ratio of 9.1 times. The report adjusts the target price to 8.45 HKD, reflecting a 31.8% potential upside from the current price of 6.41 HKD [2][5]