COSMOS(SZ:300856) Soochow Securities·2024-10-24 06:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company's Q3 2024 performance was impacted by multiple factors, including downstream inventory cycles and intensified competition, leading to a revenue of 1.86 billion yuan (up 4.7% year-on-year) and a net profit of 510 million yuan (down 4.1% year-on-year) [2] - The company is focusing on expanding its new product categories, particularly in innovative sunscreen agents, which are expected to drive long-term growth despite short-term performance pressures [2][3] - The company has a strong market position as a global leader in cosmetic raw materials, with high barriers to entry for new clients and a robust capacity expansion plan to meet future demand [3] Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 1.86 billion yuan, with a net profit of 510 million yuan, reflecting a decrease in profitability due to market conditions [2] - The gross margin for Q1-Q3 2024 was 45.3%, down 4.3 percentage points year-on-year, while Q3 2024 gross margin was 37.4%, down 12.7 percentage points year-on-year [2] - The company anticipates a net profit of 734.75 million yuan for 2024, with a projected P/E ratio of 14.76 [1][3] Capacity and Growth Potential - The company is actively increasing its production capacity, with plans to reach 1,000 tons by Q4 2024, and is expanding its product lines to include amino acid surfactants and other high-value products [2] - The company is also advancing its international projects, including a sunscreen production facility in Malaysia, to enhance its resilience against market fluctuations [2]