Bailong Chuangyuan(605016)2024-10-08 13:11Investment Rating - The investment rating for the company is "Outperform the Market" [1][6] Core Views - The company is a leading domestic producer of prebiotics, dietary fibers, and allulose, with a comprehensive product range. It has established strong partnerships with well-known domestic and international brands [5] - The company's revenue and net profit have shown consistent growth from 2020 to the first half of 2024, with revenue increasing from 500 million to 531 million yuan and net profit from 96 million to 120 million yuan during this period [5] - The company is expanding its production capacity to alleviate bottlenecks, with significant investments in new projects, including a subsidiary in Thailand and various production facilities in China [5][6] Financial Performance - Revenue for 2020-2024H1: 500 million, 653 million, 722 million, 868 million, and 531 million yuan, with year-on-year growth rates of 18.66%, 30.77%, 10.49%, 20.28%, and 28.73% respectively [5] - Net profit for the same period: 96 million, 104 million, 151 million, 193 million, and 120 million yuan, with year-on-year growth rates of 15.42%, 9.34%, 44.34%, 28.02%, and 31.24% respectively [5] - The company expects net profits of 277 million, 372 million, and 507 million yuan for 2024-2026, with corresponding EPS of 0.86, 1.15, and 1.57 yuan [6][11] Production Capacity and Expansion - The company has invested 495 million Thai Baht to establish a subsidiary in Thailand, focusing on producing allulose and other sugar products [5] - New projects include a 30,000-ton soluble dietary fiber project and a 15,000-ton crystalline sugar project, both of which have commenced production [5][8] - A planned investment of 212 million yuan for expanding production capacity of functional sugars is expected to enhance output significantly [5] Market Position and Competitive Landscape - The company has a diverse product line that meets various customer needs across multiple industries, including food, beverages, and pharmaceuticals [5] - It has established relationships with major brands such as Quest Nutrition, Halo Top, Wahaha, and Nongfu Spring, positioning itself as a key supplier in the industry [5] Valuation and Price Target - The company is valued at a reasonable range of 17.20 to 21.50 yuan based on a PE ratio of 20-25 times for 2024 [6][10]