Layn(SZ:002166) Huaxin Securities·2024-08-29 12:41Investment Rating - The report maintains a "Buy" investment rating for the company [1][2]. Core Insights - The company's main business is experiencing rapid recovery, with significant growth potential from capacity release [1]. - In H1 2024, the company reported revenue of 725 million yuan, a year-on-year increase of 42%, and a net profit attributable to shareholders of 65 million yuan, up 79% year-on-year [1]. - The gross profit margin improved due to low raw material costs, with a gross margin of 30.86% in Q2 2024, an increase of 6 percentage points year-on-year [1]. Summary by Sections Business Performance - The company's plant extraction business and other operations generated revenues of 708 million yuan and 18 million yuan respectively in H1 2024, both showing year-on-year increases of 42% and 24% [1]. - The sales of stevia extract significantly boosted revenue, with the factory construction progressing ahead of schedule, expected to commence operations by the end of September [1]. Financial Forecast - The company is projected to achieve revenues of 1.793 billion yuan in 2024, with a growth rate of 20% [4]. - The net profit attributable to shareholders is forecasted to reach 180 million yuan in 2024, reflecting a growth rate of 118.1% [4]. - The diluted earnings per share (EPS) is expected to be 0.24 yuan in 2024, with a price-to-earnings (P/E) ratio of 28 [4]. Market Position - The company is positioned as a leader in the plant extraction industry, leveraging its R&D, process, and management advantages to enhance its core competitiveness [1]. - The report highlights the company's strategic focus on the natural sweetener market and its plans to explore the industrial hemp sector in the U.S. [1].