KINGFA(SH:600143) Huachuang Securities·2024-09-17 04:41Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 7.98 CNY, compared to the current price of 7.21 CNY [2]. Core Views - The company's Q2 performance shows significant improvement, with the petrochemical segment expected to gradually reduce losses. The revenue for H1 2024 reached 23.347 billion CNY, a year-on-year increase of 14.73%, while the net profit attributable to shareholders was 380 million CNY, a decline of 19.03% [2]. - The modified plastics segment saw substantial growth in both production and sales, driven by equipment upgrades and increased demand from the automotive and home appliance sectors [2]. - The green petrochemical segment is anticipated to reduce losses, with ongoing projects expected to enhance integrated advantages [2]. - New materials production increased, although average selling prices decreased, indicating potential for profit enhancement as new projects come online [2]. - The company is expected to achieve net profits of 1.002 billion CNY, 1.518 billion CNY, and 2.068 billion CNY for 2024, 2025, and 2026 respectively, with corresponding year-on-year growth rates of 216%, 51%, and 36% [3]. Financial Summary - Total revenue for 2023 is projected at 47.941 billion CNY, with a year-on-year growth rate of 18.6%. For 2024, the expected revenue is 51.137 billion CNY, reflecting a growth rate of 6.7% [3]. - The net profit attributable to shareholders is forecasted to recover significantly from a loss of 84.1% in 2023 to a profit of 1.002 billion CNY in 2024, representing a growth rate of 216.5% [3]. - Earnings per share (EPS) are expected to rise from 0.12 CNY in 2023 to 0.38 CNY in 2024, with a projected price-to-earnings (P/E) ratio of 19 [3].