Huangma Technology(603181) 海通国际·2024-10-29 00:47Investment Rating - The report maintains an "Outperform" rating for Zhejiang Huangma Technology with a target price of RMB 13.65, based on a 2024 PE of 21 times [1][4][11]. Core Insights - In Q3 2024, the company achieved a recurring net profit of RMB 97 million, representing a year-over-year increase of 17.84%. For the first three quarters of 2024, operating income reached RMB 1.722 billion, up 22.50% year-over-year, with a net profit attributable to shareholders of RMB 286 million, an increase of 21.68% year-over-year [2][7][11]. - The company is focusing on expanding its strategic emerging sectors, particularly in high-end functional electronic chemicals and functional new materials resins, which are expected to drive future growth [3][8][10]. Financial Performance - The company reported a revenue of RMB 1,894 million for 2023, with projections of RMB 2,325 million for 2024, RMB 2,822 million for 2025, and RMB 3,325 million for 2026, indicating a growth rate of 23% in 2024 [4][6][11]. - The net profit forecast for 2024-2026 is RMB 381 million, RMB 474 million, and RMB 593 million respectively, reflecting a positive growth trajectory [4][11]. Product and Market Strategy - The company has an annual production capacity of nearly 300,000 tons of special surfactants, with a focus on optimizing product structure and increasing efficiency in small varieties [3][8]. - The average selling price of the main products was RMB 13,102.26 per ton, showing a slight decline of 1.35% year-over-year [3][8]. Raw Material Management - The average purchasing price for key raw materials was RMB 5,860.08 per ton for ethylene oxide, up 4.55% year-over-year, and RMB 8,091.29 per ton for propylene oxide, down 6.12% year-over-year. The company has established stable relationships with major suppliers to ensure a consistent supply of raw materials [4][9]. Strategic Divestment - The company plans to sell its 24.6154% equity interest in Zhongke Ya'an for RMB 4.8 million to focus more on the specialty surfactants industry and enhance operational efficiency [4][10].