ZJJH(SH:600160) Ping An Securities·2024-10-24 23:37Investment Rating - The investment rating for the company is "Recommended (Maintain)" [2][10]. Core Views - The company has shown significant profit growth due to increased sales volume and rising prices of refrigerants, with a notable increase in net profit by 64.76% year-on-year in Q3 2024 [5][10]. - The company is positioned as a leader in the fluorochemical industry, holding the largest HFCs quota in the country, which strengthens its market position following the acquisition of Zibo Feiyuan [10][9]. - The demand for refrigerants is expected to remain strong due to a recovery in domestic appliance sales and increased export orders, contributing to sustained high prices [9][10]. Financial Performance Summary - In Q3 2024, the company achieved total revenue of 58.26 billion yuan, a year-on-year decrease of 1.53%, while net profit attributable to shareholders was 4.23 billion yuan, an increase of 64.76% [5][10]. - For the first three quarters of 2024, total revenue reached 179.06 billion yuan, up 11.83% year-on-year, with a net profit of 12.58 billion yuan, reflecting a 68.40% increase [5][10]. - The gross profit margin improved to 16.95%, an increase of 4.08 percentage points year-on-year [5][10]. Product Performance Summary - The production and sales of fluorochemical raw materials increased by 12.2% and 4.0% respectively in Q3 2024, with prices rising by 2.6% quarter-on-quarter [6][10]. - The sales volume of fluorinated refrigerants grew by 21.7% year-on-year, with a revenue increase of 44.6% to 63.19 billion yuan [6][10]. - The production and sales of fluorinated fine chemicals saw substantial growth, with sales volume increasing by 118.3% and revenue rising by 120.0% year-on-year [6][10]. Industry Overview - The refrigerant industry is experiencing tight supply and recovering demand, leading to sustained price increases for major refrigerants [9][10]. - The domestic air conditioning market has shown significant growth, with production increasing by 26.0% and sales by 21.4% in September 2024 [9][10]. - The overall market conditions suggest that the company, as a leading supplier of fluorinated products, is well-positioned to benefit from the industry's upward cycle [10].