苏博特：减水剂价格承压，功能性材料景气持续

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 9.88 CNY, based on a 1x price-to-book ratio for 2024 [4][6]. Core Views - The company experienced a significant decline in net profit for Q3, with a year-on-year decrease of 43.07%, attributed to pressure on the prices of high-performance water-reducing agents, while functional materials showed continued growth [1][2]. - The company is expected to benefit from infrastructure projects in the western region of China, including participation in various large-scale projects, which may support future performance recovery [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenues and net profit of 24.76 million CNY and 0.79 million CNY, respectively, representing year-on-year declines of 3.90% and 44.43% [1]. - The gross margin for the first three quarters was 32.89%, down 2.15 percentage points year-on-year, with a net margin of 5.72%, down 1.99 percentage points [3]. - The company’s operating cash flow improved, with a net cash flow of 2.15 million CNY for the first three quarters, an increase of 0.53 million CNY year-on-year [3]. Revenue Breakdown - Revenue from high-performance water-reducing agents, efficient water-reducing agents, and functional materials for the first three quarters was 13.0 million CNY, 0.35 million CNY, and 4.63 million CNY, respectively, with year-on-year changes of -12%, -55%, and +29% [2]. - In Q3 alone, the revenue for high-performance water-reducing agents was 4.89 million CNY, down 4% year-on-year, while functional materials saw a revenue increase of 35% year-on-year [2]. Market Outlook - The report highlights a positive outlook for functional materials driven by demand in wind power and other sectors, suggesting potential for long-term growth in anti-cracking waterproof materials and high-performance wind power grouting materials [2][4]. - The company is actively expanding its market presence in the western region, which is expected to provide additional growth opportunities as infrastructure projects progress [2][4].