JHSY(002597) CSC SECURITIES (HK) LTD·2024-09-26 04:30Investment Rating - The report maintains a "Buy" rating for the company Jinhe Industrial (002597.SZ) [2] Core Views - The company has issued a price increase notice for its main sweetener product, sucralose, indicating an improving supply-demand situation in the market [2] - The report highlights that the sweetener prices have been recovering after a prolonged downturn, with multiple price increase notices issued recently [2][3] - The company is positioned as a leader in the sweetener industry, with a leading production capacity for sucralose [2] Summary by Relevant Sections Company Basic Information - On September 23, the company announced a price increase for sucralose, raising the price from 150,000 RMB/ton to 200,000 RMB/ton [2] - The stock price as of September 23, 2024, was 27 RMB, with a market capitalization of 12.767 billion RMB [2] Financial Performance - The report projects net profits for 2024, 2025, and 2026 to be 686 million RMB, 848 million RMB, and 1.023 billion RMB respectively, with year-on-year growth rates of -2.63%, 23.66%, and 20.66% [3] - Earnings per share (EPS) are forecasted at 1.20 RMB, 1.49 RMB, and 1.79 RMB for the same years, with corresponding price-to-earnings (P/E) ratios of 18.73, 15.15, and 12.55 [3] Market Outlook - The report indicates that the sweetener industry is experiencing a recovery, with improved confidence among producers and a reduction in inventory levels [2] - The company has also increased prices for its other core product, acesulfame K, which is expected to follow a similar upward trend as sucralose [2] - The report notes that the company’s second phase project in Dingyuan is progressing steadily, which is anticipated to enhance revenue performance in the future [2]