JHSY(SZ:002597)2024-09-06 08:39Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [7]. Core Insights - The company reported a 5% year-over-year decline in revenue for the first half of 2024, totaling 2.538 billion yuan, with a net profit of 247 million yuan, down 39% year-over-year. The second quarter showed a revenue increase of 3% year-over-year and a 9% quarter-over-quarter increase, driven by price increases in maltol and basic chemical products [7]. - The report highlights a recovery in overseas demand for sucralose and acesulfame, although prices remain under pressure. The company has increased the price of sucralose in August 2024 [7]. - The company is expanding its production capacity and has initiated trial production for several projects, including a bio-synthesis innovation platform [7]. Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 2.538 billion yuan, a decrease of 5% year-over-year, and a net profit of 247 million yuan, down 39% year-over-year. The second quarter revenue was 1.325 billion yuan, reflecting a 3% increase year-over-year and a 9% increase quarter-over-quarter [7]. - The gross profit for food additives and bulk chemicals in H1 2024 was 362 million yuan (down 29% year-over-year) and 101 million yuan (up 44% year-over-year), respectively [7]. Market Dynamics - The report notes that the prices of sucralose and acesulfame have fallen below industry cost lines due to intensified competition. However, there is potential for price recovery following recent price increases by major manufacturers [7]. - The company has a production capacity of 10,000 tons for maltol and 13,000 tons for sucralose, with price elasticity expected to positively impact performance in the second half of the year [7]. Future Outlook - The report projects net profits for 2024-2026 to be 774 million, 1.007 billion, and 1.258 billion yuan, respectively, with corresponding EPS of 1.36, 1.77, and 2.21 yuan per share. The current stock price corresponds to a PE ratio of 16X, 12X, and 10X for the respective years [7][8].