AHB(SH:688639) Great Wall Securities·2024-09-06 02:13Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [15]. Core Views - The company's performance in the first half of 2024 is under pressure, primarily due to a decline in the price of its main product, valine, and increased costs associated with launching new products. However, the long-term outlook remains positive with anticipated recovery in profitability as new products gain market traction [2][3]. - The company reported a revenue of 1.016 billion yuan in H1 2024, a year-on-year increase of 19.57%, while net profit decreased by 21.72% to 150 million yuan [1][2]. Financial Performance Summary - Revenue Growth: The company’s revenue is projected to grow from 1.938 billion yuan in 2023 to 2.662 billion yuan in 2024, reflecting a year-on-year growth rate of 37.3% [1][9]. - Net Profit: The forecasted net profit for 2024 is 430 million yuan, a slight decrease of 4.2% compared to 2023 [1][9]. - Earnings Per Share (EPS): EPS is expected to be 1.88 yuan in 2024, with projections of 2.81 yuan in 2025 and 3.44 yuan in 2026 [1][9]. - Return on Equity (ROE): The ROE is projected to be 20.3% in 2024, with a recovery to 24.7% in 2025 [1][11]. Product and Market Insights - The company is expanding its product portfolio with new amino acids such as 1,3-propanediol, succinic acid, and tryptophan, which are expected to contribute to revenue growth in the medium to long term [3][8]. - The competitive landscape for valine is intensifying due to increased production capacity in the industry, which has led to lower prices impacting profitability [4][8]. - The global synthetic biology market is projected to grow significantly, providing a favorable environment for the company's future development [8]. Strategic Development - The company is actively pursuing technological advancements in the production of amino acids, particularly through biomanufacturing processes, which are expected to enhance cost efficiency and product quality [8]. - Ongoing projects include the construction of production lines for valine and other amino acids, which are anticipated to boost operational capacity and market presence [8].