JHSY(002597) 华创证券·2024-09-01 11:41Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 26 CNY [1]. Core Views - The company's revenue for the first half of 2024 was 2.538 billion CNY, a year-on-year decrease of 5.10%, while the net profit attributable to shareholders was 247 million CNY, down 38.74% year-on-year. In Q2, revenue was 1.325 billion CNY, with a quarter-on-quarter increase of 9.18% [1]. - The report highlights that product prices are fluctuating, leading to a stable performance. The core products in the food additives segment saw mixed price changes, with some products experiencing significant price drops [1]. - The company is expected to benefit from price increases in its core product, sucralose, due to supply chain adjustments and seasonal demand, which may enhance future performance [1]. - The second phase of the Dingyuan project has started contributing to profits, and the company is focusing on cost reduction and efficiency improvements through technological advancements [1]. Financial Summary - The company is projected to achieve net profits of 738 million CNY, 969 million CNY, and 1.302 billion CNY for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 16x, 12x, and 9x [2][5]. - The total revenue is expected to grow from 5.311 billion CNY in 2023 to 6.067 billion CNY in 2024, reflecting a year-on-year growth rate of 14.2% [2][5]. - The gross profit margin is projected to improve, with the company aiming for a return on equity (ROE) of 9.5% in 2024, increasing to 13.4% by 2026 [5].