中草香料：北交所新股申购报告：凉味剂生产龙头，WS系列需求旺盛

Investment Rating - The report suggests a "Buy" rating for the company, indicating an expected performance that will exceed the market by over 20% [80]. Core Viewpoints - The company, Zhongcao Fragrance, specializes in flavor and fragrance production, particularly in cooling agents, with a revenue CAGR of 25.37% from 2020 to 2023 [2][26]. - The demand for cooling agents, especially the WS series, is strong, with a projected market space for WS series cooling agents expected to reach 8,000 tons in the next five years [3][56]. - The company has established stable partnerships with major global fragrance companies, enhancing its market position [12][66]. Company Overview - Zhongcao Fragrance focuses on flavor and fragrance, with key products including cooling agents, synthetic fragrances, and natural fragrances [9]. - The company has 10 invention patents and 5 design patents, showcasing its commitment to innovation [2][10]. - Revenue from cooling agents has increased significantly, accounting for approximately 77.38% of total revenue in the first half of 2024 [16][17]. Financial Analysis - The company achieved a revenue of 206 million yuan in 2023, with a net profit of 41.04 million yuan, reflecting a year-on-year growth of 8.81% [2][26]. - The gross margin and net margin have shown an upward trend since 2019, with gross margins at 33.33% and net margins at 19.93% in 2023 [2][34]. - The company’s revenue CAGR from 2019 to 2023 was 34.40%, indicating strong growth momentum [26][68]. Industry Overview - The fragrance and flavor market in China reached 42.4 billion yuan in 2022, with a projected growth rate of over 2% annually [3][47]. - The domestic demand for cooling agents has grown at an average annual rate of over 40% from 2019 to 2022 [44][53]. - The market for cooling agents is expected to expand significantly, with WS series products anticipated to replace traditional menthol in various applications [53][56]. Investment Projects - The company plans to invest in a project to produce 2,600 tons of cooling agents and fragrance raw materials, which is expected to enhance its product variety and address raw material supply constraints [3][40]. - The project aims to increase production capacity for various chemical categories, including amines and esters, thereby improving profitability and market share [41][42].