SINOCHEM INTERNATIONAL(SH:600500) Huaan Securities·2024-09-04 04:30Investment Rating - The investment rating for Sinochem International is "Accumulate" [1]. Core Views - The company turned a profit in Q2 2024, with new material projects accelerating [1]. - The overall profitability of core products continued to be under pressure in Q2 2024 due to a sluggish epoxy resin industry [1]. - The company is focusing on building a "2+2" core industrial chain, with a rich reserve of ongoing projects [1]. Financial Performance - In H1 2024, the company reported revenue of 25.861 billion yuan, a year-on-year decrease of 10.89%, and a net profit attributable to shareholders of 0.12 billion yuan, a significant decline of 107.51% [1]. - Q2 2024 revenue was 14.245 billion yuan, down 7.11% year-on-year but up 22.62% quarter-on-quarter, with a net profit of 0.298 billion yuan, a year-on-year increase of 207.65% [1]. - The gross profit margin for Q2 was 2.60%, down 1.46 percentage points year-on-year and down 1.06 percentage points quarter-on-quarter [1]. Future Projections - The company is expected to achieve net profits attributable to shareholders of 0.229 billion yuan, 0.506 billion yuan, and 0.796 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 59.92, 27.15, and 17.28 [3][5]. - Revenue projections for 2024, 2025, and 2026 are 63.061 billion yuan, 65.244 billion yuan, and 66.070 billion yuan, respectively, with year-on-year growth rates of 16.2%, 3.5%, and 1.3% [5][6].