Sobute New Materials (SH:603916) KAIYUAN SECURITIES·2024-10-28 15:02Investment Rating - Investment rating: Buy (maintained) as of October 28, 2024 [1] Core Views - The report indicates that the demand for water-reducing agents is under pressure, but there is optimism for the company's performance recovery in the future [1] - The company has experienced a decline in performance in Q3 2024, with revenue of 2.476 billion yuan, a year-on-year decrease of 44.43% [1] - The report highlights the company's financial structure is expected to improve as the real estate market stabilizes and local government debt work continues [2] Financial Performance Summary - For Q3 2024, the company achieved revenue of 912 million yuan, a year-on-year decrease of 43.07%, and a net profit attributable to shareholders of 25 million yuan [1] - The average price of high-performance water-reducing agents decreased slightly by 4.33% to 1,704 yuan/ton in Q3 2024 [2] - The company's revenue forecast for 2024-2026 has been revised down, with expected net profits of 117 million yuan in 2024, 153 million yuan in 2025, and 204 million yuan in 2026 [1][4] Business Development Summary - The company is expanding its market share in transportation, energy, water conservancy, and military industries, with a steady increase in the revenue share of new products like functional materials [3] - The overseas business is growing rapidly, particularly in Southeast Asia and other regions along the Belt and Road Initiative, indicating strong growth potential [3]