Xingfa Chem(600141) 华创证券·2024-10-27 15:20Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 32.10 CNY [1]. Core Insights - The company reported a revenue of 22.05 billion CNY for the first three quarters of 2024, a slight increase of 0.04% year-on-year. The net profit attributable to shareholders reached 1.314 billion CNY, up 37.85% year-on-year, while the net profit excluding non-recurring items was 1.269 billion CNY, an increase of 44.35% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 8.646 billion CNY, representing a year-on-year increase of 3.54% and a quarter-on-quarter increase of 32.69%. The net profit attributable to shareholders for Q3 was 509 million CNY, up 52.73% year-on-year and 20.26% quarter-on-quarter [1]. - The report highlights a significant recovery in demand for the company's main products, with the agricultural chemicals, fertilizers, specialty chemicals, and organic silicon segments showing varying performance in terms of sales volume and price adjustments [1]. Financial Performance Summary - For the first three quarters of 2024, the company generated revenues from its segments as follows: agricultural chemicals (4.003 billion CNY), fertilizers (3.000 billion CNY), specialty chemicals (3.971 billion CNY), and organic silicon (1.858 billion CNY) [1]. - The gross margin for the first three quarters was 17.96%, with a net profit margin of 6.02%. In Q3, the gross margin was 18.86%, and the net profit margin was 6.01%, indicating a year-on-year improvement in profitability [1]. - The report notes that the company is transitioning towards new chemical materials, with its subsidiary, Xingfu Electronics, receiving approval for an IPO, which is expected to enhance the company's growth prospects [1]. Financial Forecasts - The company’s projected revenues for 2024 to 2026 are 29.207 billion CNY, 31.834 billion CNY, and 32.219 billion CNY, respectively, with corresponding net profits of 1.841 billion CNY, 2.360 billion CNY, and 2.576 billion CNY [2]. - The report adjusts the net profit forecasts for 2024-2026 to 1.841 billion CNY, 2.360 billion CNY, and 2.576 billion CNY, reflecting a price-to-earnings ratio of 13.9x, 10.8x, and 9.9x for the respective years [1][2].