HCSC(600378) Shanxi Securities·2024-10-09 08:30Investment Rating - The report assigns a "Buy-B" rating for the company, indicating a positive outlook for its stock performance in the coming months [1][3]. Core Views - The fluorochemical cycle is at a bottoming phase, and the acquisition of Zhonghua Lantian enhances the company's fluorine industry layout [1]. - The company is expected to improve its core competitiveness and industry influence through independent innovation in key technologies [3]. Financial Performance - In the first half of 2024, the company achieved a revenue of 3.459 billion yuan, a year-on-year decrease of 19.63% [4]. - The net profit attributable to shareholders was 370 million yuan, down 26.32% year-on-year [4]. - The gross margin for the first half was 27.45%, an increase of 2.88 percentage points year-on-year, while the net margin was 10.71%, a decrease of 0.97 percentage points year-on-year [2][4]. Market Data - As of October 8, 2024, the closing price was 32.67 yuan, with a market capitalization of 36.223 billion yuan [3]. - The company has a circulating A-share market value of 29.751 billion yuan and a total share capital of 1.109 billion shares [3]. Future Earnings Estimates - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.97 yuan, 1.48 yuan, and 1.88 yuan, respectively [3]. - The corresponding price-to-earnings (P/E) ratios for these years are estimated at 33.8, 22.1, and 17.4 [3]. Strategic Developments - The company completed the acquisition of Zhonghua Lantian, which is now a wholly-owned subsidiary, and plans to invest up to 4.5 billion yuan in various fluorochemical projects [3]. - The company aims to enhance its fluorochemical segment and improve synergy effects through these investments [3].