XACIG(600596) 光大证券·2024-08-28 03:34Investment Rating - The report maintains a "Buy" rating for the company, despite downward revisions in profit forecasts for 2024-2026 [4] Core Views - The company's 24H1 revenue reached RMB 8.488 billion, a slight increase of 0.15% YoY, while net profit attributable to shareholders grew by 15.47% YoY to RMB 131 million [1] - The company's dual-driver strategy in crop protection and silicon-based new materials is showing significant results, with organic silicon monomer capacity reaching 550,000 tons/year, leading the industry [3] - The company is accelerating its global layout, with 24H1 export revenue reaching USD 256 million, a 23% YoY increase, and export volume growing by 66% YoY [3] Financial Performance - In 24Q2, the company's revenue was RMB 4.514 billion, a 1.77% YoY decrease but a 13.59% QoQ increase, while net profit attributable to shareholders surged 177% YoY to RMB 21 million [1] - The company's gross profit margin in 24H1 was 9.9%, a decrease of 2.4 percentage points YoY [2] - The company's silicon-based material products saw significant growth, with sales of cyclic siloxane, siloxane intermediates, and silicone rubber increasing by 64.23%, 58.41%, and 10.63% YoY, respectively [2] Business Segments - In the crop protection segment, the company has formed an integrated development model from intermediates to technical materials and formulations, with glyphosate technical material supply capacity of approximately 100,000 tons/year [3] - The silicon-based new materials segment has formed a complete industrial chain, with over 3,000 terminal products and a terminal conversion rate exceeding 40% [3] Global Expansion - The company is actively expanding in overseas markets, with 365 registrations submitted and 249 certificates obtained in 24H1, accumulating a total of over 4,200 registrations [3] - The company has established a matrix-style operation management model for organic silicon overseas, covering key markets in Europe, America, and Asia [3] Profit Forecast - The report revised downward the company's net profit forecasts for 2024-2026 to RMB 249 million (down 55.3%), RMB 403 million (down 40.2%), and RMB 540 million (down 34.9%), respectively [4] - The downward revision is attributed to the continued low prices of glyphosate and organic silicon, which are expected to pressure the company's profitability [4]