CCGB(SZ:300138) Huaxin Securities·2024-10-27 11:30Investment Rating - The report maintains a "Buy" investment rating for the company [1][2]. Core Views - The company experienced marginal revenue growth, with a reported revenue of 5.225 billion yuan for Q1-Q3 2024, reflecting a 1% year-on-year increase. However, the net profit attributable to shareholders decreased by 84% to 0.63 billion yuan, primarily due to asset impairment losses totaling 800 million yuan [1]. - In Q3 2024, the company achieved a revenue of 1.734 billion yuan, a 16% year-on-year increase, but reported a net loss of 0.37 billion yuan, a 137% decrease compared to the previous year. This was attributed to the impact of cottonseed business fluctuations and a significant decline in processing business gross margins [1]. - The gross margin for Q3 2024 decreased by 8 percentage points to 5.55%, influenced by increased upstream raw material supply and weak downstream consumption. The company's net profit margin also fell by 10 percentage points to -2.80% [1]. Revenue and Profit Forecast - The company is projected to have a revenue of 7.022 billion yuan in 2024, with a growth rate of 2.2%. The net profit attributable to shareholders is expected to drop to 0.12 billion yuan, reflecting a 75% decrease [4]. - The diluted earnings per share (EPS) for 2024 is adjusted to 0.25 yuan, with corresponding price-to-earnings (P/E) ratios of 38 times [2][4]. Business Performance - The company’s sales volume for various products showed a mixed performance, with a 14% year-on-year decline in total sales volume to 6,573 tons for Q1-Q3 2024, while the sales volume of chili red pigment increased by 55% to 1,229 tons [1]. - The company is focusing on optimizing its operational management and enhancing market risk assessment capabilities to mitigate the impact of intensified competition and commodity price fluctuations in the cottonseed processing business [1].