AKL(SH:603722) KAIYUAN SECURITIES·2024-09-02 09:46Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The traditional business has hit a bottom, and the 1,000-ton COC production line is expected to begin trial production in Q3 2024. Despite significant short-term operational pressures, the potential breakthrough in COC industrialization and the promising future of this material are viewed positively [2][5]. Financial Performance - In H1 2024, the company achieved revenue of 242 million yuan, a year-on-year decrease of 13.30%. The net profit attributable to shareholders was 1.98 million yuan, down 87.75% year-on-year. The decline in performance is attributed to factors such as the lack of large-scale construction of offshore wind power units and increased domestic production capacity of polyether amines, leading to historically low product prices [2][4]. - The company maintains its profit forecast, expecting net profits attributable to shareholders to be 26 million, 121 million, and 191 million yuan for 2024-2026, corresponding to EPS of 0.30, 1.37, and 2.17 yuan per share. The current stock price corresponds to P/E ratios of 114.9, 24.7, and 15.6 times for the respective years [2][6]. Product Performance - The main products, fatty amines and optical materials (automotive coatings), saw sales of 9,520 tons and 3,244 tons in H1 2024, representing year-on-year changes of -8.2% and +34.2%, respectively. The average prices were 15,211 yuan and 29,882 yuan per ton, with year-on-year changes of -13.83% and -24.71% [4]. - The price of polyether amine D230 reached a historical low of 12,000 yuan per ton in July 2024 but has since recovered to 14,000 yuan per ton as of August 30, 2024 [4]. Production Capacity and Projects - The 1,000-ton COC production line has been completed in H1 2024 and is currently undergoing trial production approval procedures, with trial production expected in Q3 2024. The company is actively engaging with downstream enterprises to establish preliminary contacts and aims to provide samples for testing once mass production begins [5]. - The company has received approval for a private placement of shares and is progressing well with the potential project in Qianjiang, which includes 20,000 tons of polyether amine and 30,000 tons of COC capacity, marking it as a significant investment project in Hubei province for 2023 [5].