Xingfa Chem(SH:600141) KAIYUAN SECURITIES·2024-10-27 02:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown continued improvement in Q3 performance, with stable demand in specialty chemicals and fertilizers, and a significant increase in net profit [3][4] - The listing of the subsidiary, Xingfu Electronics, is expected to contribute to new profit growth [4] - The company is on track to transition into a world-class fine chemical enterprise, supported by ongoing improvements in its industrial chain [3] Financial Performance Summary - For Q3 2024, the company achieved revenue of 86.46 billion yuan, a year-on-year increase of 3.54% and a quarter-on-quarter increase of 32.69% [3] - The net profit attributable to shareholders for Q3 2024 was 5.09 billion yuan, reflecting a year-on-year increase of 52.73% and a quarter-on-quarter increase of 20.26% [3] - The company’s revenue for the first three quarters of 2024 was 220.50 billion yuan, with a year-on-year growth of 0.04% [3] Product Performance - In the first three quarters of 2024, the sales amounts for specialty chemicals, pesticides, fertilizers, and organic silicon series were 39.7 billion yuan, 40.0 billion yuan, 30.0 billion yuan, and 18.6 billion yuan respectively [4] - The average selling prices for these products showed a decline in specialty chemicals and pesticides, while fertilizers experienced a price increase [5] Profitability Metrics - The company’s gross margin and net margin for the first three quarters of 2024 were 17.96% and 6.02%, respectively [4] - The projected net profits for 2024-2026 are 17.15 billion yuan, 21.95 billion yuan, and 26.54 billion yuan, with corresponding EPS of 1.55 yuan, 1.99 yuan, and 2.41 yuan [3][4] Valuation Metrics - The current stock price corresponds to a PE ratio of 14.9 for 2024, 11.7 for 2025, and 9.6 for 2026 [3][4] - The company’s market capitalization is approximately 255.96 billion yuan [1]