KINGFA(SH:600143) Guohai Securities·2024-09-11 13:30Investment Rating - The report maintains a "Buy" rating for the company [1][6][24] Core Views - The company's main business in modified plastics shows strong performance, with a significant improvement in Q2 2024 results compared to Q1 2024 [1][2][4] - Despite facing pressure in the green petrochemical and healthcare sectors, the overall revenue growth is promising, driven by the modified plastics and new materials segments [3][5][6] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 23.35 billion yuan, a year-on-year increase of 14.7%, but the net profit attributable to shareholders decreased by 19.0% to 380 million yuan [2][3] - Q2 2024 revenue reached 12.84 billion yuan, up 20.4% year-on-year and 22.1% quarter-on-quarter, with net profit increasing by 62.1% year-on-year and 166.8% quarter-on-quarter to 280 million yuan [2][3][5] Segment Analysis - The modified plastics segment generated revenue of 13.89 billion yuan in H1 2024, a 19% increase, with sales volume rising 27% to 1.093 million tons [3][5] - The new materials segment reported revenue of 1.55 billion yuan, up 9%, with sales volume also increasing by 27% to 98,000 tons [3][5] - The green petrochemical segment's revenue was 4.0 billion yuan, a slight increase of 1%, while the healthcare segment generated 160 million yuan, with a significant decline in profit margin [3][5] Future Outlook - The company is expected to see revenue growth of 56.76 billion yuan, 64.61 billion yuan, and 73.73 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 1.01 billion yuan, 1.53 billion yuan, and 2.17 billion yuan [6][7][24] - The integration of petrochemical projects is progressing, with new material projects set to commence production soon, enhancing the company's competitive edge [6][7]