Luxi Chemical(000830) 海通证券·2024-09-06 00:09Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report highlights that the company achieved a revenue of 14.041 billion yuan in the first half of 2024, representing a year-on-year growth of 21.63%. The net profit attributable to the parent company was 1.206 billion yuan, showing a significant year-on-year increase of 588.74% [3][4] - The growth in performance is attributed to the increase in selling prices of certain products and a decrease in raw material procurement costs, which positively impacted the gross margins of some products [4] - The company is actively advancing project construction, with several projects nearing completion, which is expected to further enhance production capacity [4] - The report provides earnings forecasts for 2024-2026, estimating EPS of 1.00, 1.19, and 1.40 yuan respectively, with a reasonable valuation range of 14-16 times PE, corresponding to a target price of 14.00-16.00 yuan [4][5] Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 14.041 billion yuan, a 21.63% increase year-on-year, and a net profit of 1.206 billion yuan, up 588.74% year-on-year [3] - The sales gross margin and net profit margin for the first half of 2024 were 17.99% and 8.34%, respectively, reflecting increases of 7.88 and 6.66 percentage points year-on-year [4] - The company’s three expense ratios decreased to 6.44%, with reductions in sales, management, and financial expense ratios [4] Project Development - The company has several ongoing projects, including the caprolactam-nylon 6 phase I project and others, with progress rates of 95% to 50% as of the first half of 2024 [4] - The procurement strategy focuses on cost-effectiveness, partnering with large state-owned enterprises to stabilize supply and reduce costs [4] Earnings Forecast - The projected earnings for 2024-2026 indicate a recovery with expected revenues of 29.33 billion yuan in 2024, 32.61 billion yuan in 2025, and 35.58 billion yuan in 2026 [5][9] - The gross margin is expected to improve from 15.9% in 2024 to 16.9% in 2026, indicating a positive trend in profitability [9] Valuation - The report suggests a reasonable valuation range of 14-16 times PE for the company, based on comparisons with industry peers [4][8]