Sanmei(SH:603379) Guoxin Securities·2024-10-29 02:11Investment Rating - The report maintains an "Outperform the Market" rating for the company [1][2][17]. Core Views - The company has experienced significant growth in net profit, with a year-on-year increase of 136% in the first three quarters of 2024, and a 64% increase in the third quarter, despite a quarter-on-quarter decline of 23% [1][4]. - The revenue for the first three quarters of 2024 reached 3.039 billion yuan, representing a 16.5% year-on-year increase [1][4]. - The company is actively investing in the development of fourth-generation refrigerants, with a planned investment of 1.57 billion yuan to build new production facilities [1][17]. Financial Performance - The company achieved a gross profit margin of 28.28% and a net profit margin of 18.40% in the first three quarters of 2024, both showing improvements compared to the previous year [1][4]. - The third quarter saw a gross profit margin of 31.08% and a net profit margin of 17.56%, indicating a year-on-year increase of 18.20 percentage points and 5.15 percentage points, respectively [1][4]. - The company’s revenue and profit growth is attributed to the rising prices of refrigerants, with significant price increases for R22 and R32 due to demand from household air conditioning [1][7]. Market Trends - The report highlights a structural reform in the supply side of refrigerants, leading to a more concentrated competitive landscape in the industry, which is expected to benefit leading companies like this one [2][17]. - The prices of refrigerants have been on the rise, with R22 and R32 prices increasing by 56% and 106% respectively since the beginning of the year [1][7]. Future Outlook - The company is expected to continue benefiting from the long-term favorable cycle of the refrigerant market, with projected revenues for 2024, 2025, and 2026 at 4.096 billion yuan, 4.426 billion yuan, and 4.609 billion yuan respectively [2][17]. - The net profit forecasts for the same years are 731 million yuan, 832 million yuan, and 933 million yuan, reflecting a year-on-year growth rate of 161.2% in 2024 [2][17].